Paragon Prompt Payment Action Plan (abridged)

We have negotiated payment terms with our suppliers of between 14 & 120 days, we look to adhere to these agreed payment terms with our supply base and where we are challenged in delivering this goal, we are taking the following actions.

• Increased financing – we continue to work with external funders to increase our credit lines to enable faster payments.
• Reduction in transformation costs incurred to remodel the overall business – the business has been through a period of business transformation and improvement; these actions have been predicted by a decline in print volumes leading to a need to reduce overall operational capacity to improve overall operational efficiencies. This transformation programme has consumed considerable amounts of cash and is coming to an end.
• Increased profitability – the outcome of the transformation plan outlined above is an increased efficiency of operation which will improve cash generation allowing the business to meet its agreed payment terms with its suppliers.
• Continued engagement with our customers to ensure they are able to match the aspirations of this programme of ensure all participants in the commercial process are paid in a reasonable and agreed timescale.

With the above causes being addressed, Paragon aims to ensure that the requirement to pay >95% of our supply chain within 61 days is fulfilled by the end of the calendar year 2023.

For the full evaluation for percentage of paid invoices – Remediation Plan, please click here