ACTION PLAN FOR IMPROVING PAYMENT DAYS

REASONS FOR DELAYED PAYMENTS

1. Delayed submission of invoices by supplier.

2. Incomplete or non-compliant documents by suppliers. Payments can be delayed if mandatory supporting documents are incomplete or not submitted in line with agreed requirements.

3. Disputed charges or services: Disputes regarding quality of goods, scope of services, or amounts invoiced. Payments are generally held until the issue is resolved.

4. Internal approval process: Delays may occur due to multi-layer approvals, availability of resources, or internal control checks.

ACTION PLAN FOR IMPROVEMENT

1. Clear communication with suppliers to provide invoices on designated emails to reduce the number of lost invoices.

2. Clearly communicating to suppliers Colt’s invoice requirements, including mandatory purchase order reference, VAT compliance and supporting documentation to reduce rework and exceptions.

3. Dispute management & resolution framework – formal dispute resolution procedures are in place to ensure issues are identified early and resolved promptly in collaboration with suppliers. Plan to revisit the procedure during the year to make the process more robust and responsive.

4. Internal approval processes to be reviewed to minimize bottlenecks with defined turnaround times and escalations mechanisms for overdue approvals.

5. Process Automation – increased use of automated invoice capture, matching and workflow tools to improve processing accuracy and reduce manual intervention.

6. Supplier Master Data governance – strengthened controls over supplier onboarding to ensure banking details are accurate and payment terms are in line with the Company’s standard payment terms with a maximum of 60 days.

7. Regular reporting cadence to be agreed and implemented with Group Internal Audit (Robert Moores’ team).

Plan approved by: Stefan Craciun Director - Cash Management Colt Technology Services