PR agency clients are taking longer than ever to settle their
bills, a new report claims.
Clients are taking six days longer to settle debts than three years ago,
according to data compiled by market research company, The Prospect
Its Business Ratio poll shows outstanding debtor days increased from 67
in the 1996/97 accounting year, to 73 days in 1998/99 for ’leading
The report analysed and compared the financial performances of 86
leading PR companies. But PRCA Chairman Tom Watson refuted the evidence
in the Prospect report.
He said: ’The picture from the latest PRCA benchmark study indicates
that on average, clients are taking 48 days to pay their bills to
agencies - much quicker than the 73 days identified in the Prospect Shop
The report was based on data filed by leading consultants at Companies
House. ’The PRCA may have compared companies across a broader
But our findings are factual, based on the financial data required by
law,’ said Lucy Hill, Prospect Shop marketing manager.