FTSE 100 Companies Lose £210m through incorrect Bill Payments: PCMG Report
The biggest names on London’s Stock Market have lost more than £210 million over the past six years alone because of the incorrect payment of bills and overcharging, new research has revealed.
The analysis of the FTSE 100 by industry-leading operating cost consultancy PCMG shows that most of the money haemorrhaged is as a result of accounts payable errors.
Its report estimates that the 100 big hitters, many of them multi-national organisations, have needlessly paid out more than £112m over the past four years as a result of errors in their payment processes.
Added to that, almost £51m has headed out the door in incorrect energy spend, along with a further £50m in unnecessary telecoms service payments over the past six years.
Put all that together and the overall figure comes to more than £210m. Jenny Draper, managing director of PCMG, said: “Our latest report highlights the large amounts of money that some of the biggest listed companies on the London markets are losing as a result of a raft of billing errors.
“However, this is not just an issue for the FTSE 100; companies of all sizes are still failing to truly get to grips with the hidden complexity and the savings that a forensic approach to their accounts can deliver for them.”
The report highlights the three main areas of concern: Accounts payable errors, incorrect energy spend and unnecessary or incorrect telecoms service payments.
PCMG’s energy team’s growing case files include examples of retailers still paying bills for outlets that have actually closed their doors as a result of companies merging or being bought out.
The company also warns that businesses are overpaying energy bills through incorrectly calculated non-commodity costs, such as network charges and environmental taxes. Sometimes the figure can stretch well into the millions.
PCMG has carried out its forensic auditing for the 30 largest UK energy users. And, in the past three years, its expert team has recovered £1.5m for three high street banks alone, along with £9.6m for the NHS.
Jenny added: “While the wrong arithmetic and pricing errors can be detected by bill checking, more often than not serious errors can only be uncovered through the application of technical expertise, deep regulatory knowledge and understanding, combined with correct use of forensic auditing techniques.
Telecoms is another growing area of concern highlighted in the PCMG report, with complex billing processes, multiple suppliers and an ever-changing landscape of services and company needs.
Issues can be compounded following mergers and acquisitions, its research found.
She added: “Failure to properly put in place the right strategies to ensure your organisation’s telecoms needs are being met and run as efficiently as possible in an ever-more intricate and global environment can also prove costly.
“So too is not understanding the sometimes complex billing data that comes with the ever-growing number of services companies need to operate successfully.
“Most organisations have more than one supplier depending on the type of telecoms service – whether that be mobile, voice or data.
“Having this approach means you can shop around for the best service for you, however, it also means that not all the information you need can be found on one single bill. One product may be linked with another, but they may also come on different bills.
“Businesses and organisations need to be aware of these links and the complexities of the billing process. It’s yet another example of the challenges facing them in this complex landscape that companies operate in today.”
With its headquarters in Blackpool, PCMG works to maximise its clients’ liquidity by applying highly-specialist expertise to reduce operating costs and improve overall performance in the areas of energy, telecoms, water and accounts payable.
By looking deeper below the surface, it has recovered well over £300m for those clients to date.
PCMG is a world-class operating cost consultancy, with 30 years’ experience. It is part of the Ayming Group, Europe’s leading business performance consultancy, operating across 16 global markets, with audits delivered in more than 30 countries.
For further information please contact: Paul Owen or Oliver Smith at KRPR
Notes to Editors:
- PCMG (Professional Cost Management Group) is a world-class operating cost consultancy, working across the private and public sectors
- The company is committed to deliver a clean bill of financial health for clients
- PCMG specialises in reducing operating costs and overall performance in the areas of Energy, Telecoms, Water and Accounts payable
- PCMG is part of Ayming (www.ayming.com), Europe’s leading operating cost consultancy operating in 16 global markets with over 30 years’ experience. As a group, they’ve delivered audits in more than 30 countries, with over £1bn recovered for clients every year
- PCMG was established in 1993 and has achieved over £400m in refunds and savings for clients since then
- The consultancy works for more than half of the FTSE 100, more than half of the UK’s 30 largest energy users and more than 90% of the UK’s largest telecoms carriers
- In the past 18 months alone, the company has recovered £100 million for clients from all major sectors including IT & Communications, Financial Services, Retail, Manufacturing, Public Administration, Healthcare, Utilities and Education.