Capgemini UK Plc’s CCJs — £248 & £59,289 owed

Capgemini has paid between 16–25% of invoices late, with a maximum payment term of 90 days.

With the nation’s modest sized enterprises are currently owed £26billion in overdue payments, according to research by payments processing company Bacs.

Do you think that Big businesses should pay their suppliers on time?

What do you think of Capgemini UK Plc late payments and also failure to pay at all (resulting in CCJs)?

Big businesses that continually fail to pay their suppliers on time have been named and shamed by the government for the first time in 2017.

Unfortunately, even this has not resulted in large companies such as Capgemini UK Plc continuing not to pay smaller firms what they are owed on time, or potentially at all.

The above image shows that Capgemini UK Plc has two unsatisfied CCJs (County Court Judgements), one dated from 2016, and a more recent one from April 2020.

In 2017 on average, the 307 large businesses that filed payment reports to the government met invoice payments late 71 per cent of the time.

Under the rules introduced in April 2017, all large UK companies are required to publish specific information regarding their payment policies, practices and performance — including the average time taken to pay supplier invoices — twice yearly.

Failure to comply with the rules is a criminal offence and can result in a hefty fine.

The reporting requirement applies to large companies and large limited liability partnership regardless of whether they are private, public or quoted, that meet two or more of the size thresholds in the past two preceding financial years: annual turnover of £36millon; balance sheet total of £18millon; and/or 250 employees.

The report is available online for anyone to have a look at, and updates as soon as each business comes forward with its information.

It is aimed at helping suppliers to make more informed decisions about who they do business with.

The measure, launched by the Department for Business, Energy and Industrial Strategy, also seeks to alleviate the administrative and financial burdens faced by thousands of small and medium sized business due to late payments.

The nation’s modest sized enterprises are currently owed £26billion in overdue payments, according to research by payments processing company Bacs.

Meanwhile, the Federation of Small Businesses (FSB) calculates that over 30 per cent of payments to small businesses are late and the average value of each payment is £6,142. The trade body also predicts that 50,000 UK business shut up shop every year because of the issue.

Late payments remains a thorny issue for SMEs and UK big businesses aren’t the only ones that fall foul of this.

Research, based on a study of 80,904 invoices UK SME invoice by business finance company MarketInvoice, found that 73 per cent of invoices sent by British businesses to EU firms were paid late — up from 40.4% in 2016.

Across the Atlantic, the number of invoices paid late by firms in the US increased from 40.4 per cent in 2016 to 71 per cent in 2017.

Back in Britain, the government appointed a small business commissioner, Paul Uppal, dedicated to drive a culture change in payment practices to ensure small businesses are treated fairly.

Mike Cherry, FSB national chairman, said that both the creation of the small business commissioner as well as the duty to report go some way in helping SME suppliers back has called on the government to do more to tackle the issue.

He said all FTSE 350 companies should be forced to sign-up to a ‘strengthened’ code with a new ‘three strikes and you’re out’ rule that would specifically target repeat offenders.

‘This would encourage more large businesses to actively review their treatment of suppliers and start fostering the cultural change that is needed,’ he added.

‘The small business community is growing increasingly frustrated by the poor payment culture and supply chain bullying that is rife in the UK.

‘This is not just a commercial problem that needs to be resolved, it is also an ethical one where small firms are being put at risk, or even out of business, by bigger firms taking advantage.’

According to the report Capgemini has paid between 16-25% of invoices late, with a maximum payment term of 90 days.

That means up to 25% of Capgemini’s suppliers have waited more than 90 days to get paid.

In the case of a CCJ, this would mean that for example a supplier invoiced Capgemini on say the 1st March 2019. This would become due on the 30th May 2019. The supplier would likely then chase Capgemini for payment, before issuing a ‘Letter of Claim’ on say the 1st July 2019. A ‘Letter of Claim’ is a formal letter, and would typically give the recipient 30 days in which to reply. This would then give Capgemini until 31st July 2019 in which to reply.

The supplier could then submit a request for a CCJ on the 1st August 2019, which likely would not then be deemed as being issued until the 2nd August 2019. It would be deemed to be served 5 days after this, or on the 7th August 2019. Capgemini would then have until 21st August 2019, in which to reply.

A request for judgement could then be requested on the 22nd August 2019, and then a judgement issued on say the 24th August 2019.

As at the 24th August 2019 176 days would have passed since Capgemini was invoiced, and the payment would be 86 days overdue.

In order for a large CCJ such as the one for £59,289 to be enforced this would need to be transferred to the High Court for them to issue the requisite order this may take an additional 4 weeks or say 28 days.

This mean that 204 days had now elapsed since Capgemini was invoiced, and the payment would be 114 days overdue.

However, even then Capgemini may still choose not to pay, as with the £248 example with the CCJ issued on 13th May 2016. Assuming it was say 86 days overdue as at 13th May 2016, then on today (5th May 2020) it would mean that the payment is 1,539 days overdue and potentially 1,629 days since Capgemini was originally invoiced.

Do you think that Big businesses should pay their suppliers on time?

What do you think of Capgemini UK Plc late payments and also failure to pay at all (resulting in CCJs)?

Alastair Majury Chartered MCSI, is also a director of Majury Change Management Ltd is a highly experienced Senior Business Analyst / Data Scientist with a proven track record of success planning, developing, implementing and delivering migrations, organisational change, regulatory, legislative, and process improvements for global financial organisations, covering Retail Banking, Investment Banking, Wealth Management, and Life & Pensions.

For several years now, Alastair has worked extensively with a variety of financial institutions in order to offer the utmost comprehensive services. As a data scientist/business analyst, Alastair Majury Chartered MCSI is expected to find intuitive and sensible solutions to complex problems.

As a data scientist/business analyst, Alastair Majury Chartered MCSI has worked closely with several high-profile businesses, such as BNP Paribas, National Australia Bank, Standard Life and the Royal Bank of Scotland Group.​A graduate of University of Glasgow, Alastair Majury Chartered MCSI earned his M.A. in Economics with Business Economics. Since then, Alastair has undergone several training sessions and earned multiple certifications for a variety of skills. More specifically, he has earned certifications in IAQ, risk management, resource management, and a bevy of other areas. ​Alastair Majury thoroughly enjoys his work.

What excites him most about being a data scientist/business analyst is that every problem has a variety of solutions. This allows for a great deal of creativity on his part. Providing ingenious solutions to his customers’ problems provides a great deal of satisfaction to Alastair Majury Chartered MCSI. Every single day can be a new and challenging problem.​

Although he is a fierce and determined worker, Alastair also manages to find free time to embrace his hobbies and interests. Alastair is a major proponent of philanthropy and charitable endeavors. He constantly finds new and exciting ways to promote charities and philanthropic organizations in his community. He also tries to donate time and funds to said organizations whenever he can. Alastair Majury Chartered MCSI firmly believes that if we all work together towards a common goal, we can find peace.

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I am a Chartered Member of CISI, which is the UK’s leading securities and investment professional body. Alastair Majury resides locally in Dunblane.

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Alastair Majury

Alastair Majury

I am a Chartered Member of CISI, which is the UK’s leading securities and investment professional body. Alastair Majury resides locally in Dunblane.

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