Previous regulatory judgement: Honeycomb Group Limited (11 January 2023)
Updated 31 January 2024
Applies to England
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RSH Narrative Regulatory Judgement
- Provider: Honeycomb Group Limited
- Regulatory code: LH2162
- Publication date: 11 January 2023
- Governance grade: G2
- Viability grade: V2
- Reason for publication: Viability regrade
- Regulatory route: Stability Check and Reactive Engagement
Regulatory judgement
This judgement regrades our assessment of Honeycomb Group Limited’s viability grade from V1 to V2 and confirms its existing G2 grade for governance.
The regulator has assurance that Honeycomb Group Limited (Honeycomb) complies with the financial viability elements of the Governance and Financial Viability Standard and that its financial plans are consistent with, and support, its financial strategy. Honeycomb has an adequately funded business plan, sufficient security, and is forecast to continue to meet its financial covenants.
Honeycomb is updating its stock data information and is increasing investment in its existing homes. Delivering this investment, coupled with the current economic uncertainty in relation to wider inflation and interest rates, reduces Honeycomb’s capacity to respond to adverse events.
The regulator’s assessment of Honeycomb’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 Honeycomb’s current governance grading.
Other providers included in the judgement
None
About the provider
Origins
Honeycomb is a charitable community benefit society that was formed in 1965 as North Staffordshire Housing Society Limited. The provider changed its name to Staffordshire Housing Association Limited in 1983, and then again in 2019 to Honeycomb Group Limited.
Registered Entities
Honeycomb is the only registered entity in the group.
Unregistered Entities
There are two active unregistered entities. Stillness (924) Limited provides photovoltaic solar panels to Honeycomb’s homes. Honeycomb Charitable Services Limited works to end relationship abuse and tackle homelessness in Staffordshire and surrounding areas.
Geographic Spread and Scale
Honeycomb owns and manages around 3,200 homes, with the majority located in Staffordshire.
Staffing and Turnover
Honeycomb employs the full-time equivalent of 260 staff. Its turnover for the year ended 31 March 2022 was £25.4m.
Development
Honeycomb intends to deliver around 280 units between 2023 and 2029. Its programme comprises homes for affordable rent.
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.