HEADLAM GROUP PLC

A singular standard payment term does not exist across our supplier base due to the long-standing relationships that we have with our suppliers. The majority of terms are 10th of second month following date of invoice (being 40 to 70 days) or 10th of third month following date of invoice (being 70 to 100 days). In most cases settlement discount is included within the terms. Any amendments to such terms are negotiated and agreed by both parties. For service provider suppliers (i.e. excluding stock for resale suppliers) standard payment terms are end of month following date of invoice (being 30 to 60 days).

• All invoices are registered onto the system on receipt and subsequently authorised at the earliest possible date.
• If for any reason there is a discrepancy between the invoice value and what our internal purchase order system is expecting the invoice is suspended pending confirmation of the query to determine if this is a supplier or internal error.
• If it is deemed that the query is due to supplier error, a linked debit note is raised on our system and emailed to the supplier informing them of the query.
• Once the credit note is received from the supplier it is authorised onto our system automatically authorising the invoice previously held under query.
• The authorised invoice will then be paid in the next payment run to the supplier.