Previous regulatory judgement: Calico Homes Limited (15 November 2022)
Updated 13 December 2023
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Calico Homes Limited
- Regulatory code: L4254
- Publication date: 15 November 2022
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Viability regrade
- Regulatory route: Stability Check and Reactive Engagement
Regulatory judgement
This regulatory judgement regrades Calico Homes Limited’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.
The regulator has assurance that Calico Homes Limited (Calico) continues to comply with the financial viability elements of the Governance and Financial Viability Standard. Calico has an adequately funded business plan, sufficient security in place and is forecast to continue to meet its financial covenants under a reasonable range of scenarios.
Calico is investing significantly in its existing homes, including an accelerated programme to improve energy efficiency. This investment reduces interest cover, and coupled with the economic uncertainty in relation to inflation and interest rates means that Calico’s capacity to respond to adverse events is reduced.
The regulator’s assessment of Calico’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. On the basis of the Stability Check, the regulator has concluded that there is no evidence to indicate a change to Calico’s current governance grading.
Other providers included in the judgement
None
About the provider
Origins
Calico was originally registered in March 2000 to receive the transfer of 5,300 homes from Burnley Borough Council.
In 2013 the group was restructured, with Calico Homes becoming a subsidiary of the unregistered group parent, Calico Group. The other subsidiary companies focus on addressing local employability, homelessness, domestic abuse, alcohol, and drug dependency issues, and provide construction, repairs, and development services.
Registered Entities
Calico is the only registered entity.
Unregistered Entities
There are no unregistered entities.
Geographic Spread and Scale
Calico owns around 5,150 homes and operates across eight local authorities in the north west. The bulk of Calico’s stock is general needs but it also provides housing for older people and some supported housing.
Staffing and Turnover
For the year ended 31 March 2022, Calico reported a turnover of £27.2m and employed 201 full-time equivalent staff.
Development
Calico has a target of delivering around 400 new homes between 2022 and 2025. The new homes will be a mixture of general needs, affordable rent and shared ownership units.
About our judgements
Key to Grades
Governance:
| Compliant | |
|---|---|
| G1 | The provider meets our governance requirements. |
| G2 | The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. |
| Non-compliant | |
|---|---|
| G3 | The provider does not meet our governance requirements. There are issues of serious regulatory concern and in agreement with us the provider is working to improve its position. |
| G4 | The provider does not meet our governance requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action. |
Viability:
| Compliant | |
|---|---|
| V1 | The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios. |
| V2 | The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance. |
| Non-compliant | |
|---|---|
| V3 | The provider does not meet our viability requirements. There are issues of serious regulatory concern and, in agreement with us, the provider is working to improve its position. |
| V4 | The provider does not meet our viability requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action. |
Definitions of Regulatory Routes
In Depth Assessment (IDA): An IDA is a bespoke assessment of a provider’s viability and governance, including its approach to value for money. It involves on-site work and considers in detail a provider’s ability to meet its financial obligations and the effectiveness of its governance structures and processes.
Stability Checks: Based primarily on information supplied through regulatory returns, a Stability Check is an annual review of a provider’s financial position and its latest business plan. The review is focused on determining if there is evidence to indicate a provider’s current judgements merit reconsideration.
Reactive Engagement: Reactive engagement is unplanned work which is triggered by new information or a developing situation which may have implications for a provider’s current regulatory judgement.
Stability Checks and Reactive Engagement: In some cases, we will publish narrative regulatory judgements which combine evidence gained from both Stability Checks and Reactive Engagement.
For further details about these processes, please see Regulating the Standards.