Payment performance improvement action plan

Background and introduction

Langtree Property Partners Limited “Langtree” is fully committed to maintaining fair payment terms with all suppliers.

To achieve our target of paying at least 95% of suppliers within 60 days, Langtree has developed this Payment Performance Improvement Action Plan.

Alongside this Action Plan we have established robust reporting processes to monitor payment performance and progress against this plan.

This Action Plan has been approved by the Langtree Board and signed by the Group Finance Director.

Identification of primary causes for payment delays

We have reviewed our historic payment performance and identified the principal issues impacting our payment performance as

1. A delay in the resolution of invoice queries

2. A delay in the verification of new supplier details.

Actions to address each of the primary causes for payment delays

A delay in the resolution of invoice queries. 

We aim to solve queries faster and subsequently speed up payments by:

• Enhancing our new supplier forms to reinforce the information on all invoices required to ensure a smooth invoice processing with all new suppliers.
• Adopting a new invoice query resolution process which targets notifying suppliers of queries, within 1 working day and committing to resolve queries within 5 working days.
• Proactively contact existing suppliers to remind them of information required to ensure a smooth payment process.

2. A delay in the rectification of new supplier details 

We aim to improve our processes for the verification of new supplier details by:

Utilising our accounting software to provide an audit trail for bank detail verifications.

Enhancing our new supplier firm to include additional mandatory requirements ensuring supplier set up is completed in ‘one-go’

Invoice payments within agreed contractual terms

The actions identified at Section 4 once successful will help ensure Langtree meets its target of paying all suppliers within agreed contractual terms. In addition to those actions highlighted above, we will:

Proactively review all payments terms held within our accounting system to ensure they are accurate and up to date.

Additional actions being undertaken

In addition, the following actions are performed which will have a positive impact as we aim to exceed payment rates of 95% within 60 days.

• We complete fortnightly reports on invoice approval rates across the business.
• We have committed to diarised twice monthly payment runs.
• We perform monthly statement reconciliations.
• We have reviewed and updated delegated authority limits.

Commitment to regular reporting

Payment performance metrics and progress against this action plan will be reported to the Senior Management Team (SMT) (bi-monthly), the Board (quarterly) and the Audit Committee (six monthly). This reporting ensures senior accountability for achieving improvements in invoice payment performance.

Signed:

Thomas Bellis FCA

Group Finance Director