April 2015’s snapshot of debt and collection in the channel through CreditWorks reflects what was predicted in the previous month’s report – that wet weather and shorter days slowed building activity, which is reflected in sales being “quite significantly” down on March.
Last time, CreditWorks’ Alan Johnston also commented on the traditional improvement in DSO figures from April on, and this is indeed the case again this year, with overall DSO below 60 days for the first time since December.
While 30- and 90-day debt remained stable, there was significant improvement in the level of 60-day debt in particular.
Most sectors showed an improvement in the collection area, with the sharpest drop being the Building Material Supply (now at 61 days from a high of 67+ in December). Conversely, a slight increase means the Glass Sector now has the highest DSO, at just over 62 days.
Be sure to read the latest issue of NZ Hardware Journal to get the latest on building consent stats from Statistics NZ, hardware channel spending from Paymark and our exclusive building industry credit gauge from CreditWorks!