Regulatory Judgement on Cobalt Housing Limited L4361

Regulatory Judgement on Cobalt Housing Limited L4361 December 2019 Regulatory Judgement Cobalt Housing Limited L4361 Publication Details Reason for publication Governance upgrade Regulatory process In Depth Assessment Please see the definitions in Annex 1 for more detail Governance G1 (Compliant) The provider meets our governance requirements. Viability V1 (Compliant) The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios. Key to grades G1 / V1 Compliant G2 / V2 Compliant G3 / V3 Non-compliant and intensive regulatory engagement. G4 / V4 Non-compliant, serious failures leading to either intensive regulatory engagement or the use of enforcement powers. Page 2 of 5 Regulatory Judgement Cobalt Housing Limited L4361 Provider Details Origins Cobalt Housing Limited (Cobalt) was formed in 2003 following a transfer of homes from Liverpool City Council. Cobalt is a Community Benefit Society and owns and manages 6,000 homes in the Fazakerley, Croxteth and Norris Green areas of North Liverpool. In September 2017 Cobalt demerged from Onward Homes Limited and became a standalone organisation, reflecting a commitment to focus on this defined geographical area. Registered Entities Cobalt is the only registered entity. Unregistered Entities There are no unregistered entities. Geographic Spread and Scale Cobalt operates in North Liverpool. Staffing and Turnover Cobalt’s turnover for the year ending 31st March 2019 was £27.5m. It employs 129 staff. Development Cobalt plans to develop 500 units over the next five years. Page 3 of 5 Regulatory Judgement Cobalt Housing Limited L4361 Regulatory Judgement This is the regulator’s first narrative regulatory judgement for Cobalt. It upgrades our previous interim assessment of Cobalt’s compliance with the governance element of the Governance and Financial Viability Standard from G2 to G1. Cobalt demerged from Onward Homes Ltd in September 2017. On the basis of an In Depth Assessment which we completed in November 2019, the regulator has assurance that Cobalt has developed a clear strategy and that it has implemented new governance, risk management and business planning arrangements that meet our governance requirements. Cobalt has addressed all of the recommendations of an external organisational review, commissioned as part of its demerger preparations. The regulator’s assessment of Cobalt’s compliance with the financial viability element of the Governance and Financial Viability Standard is unchanged. Based on evidence gained from an IDA, the regulator has assurance that Cobalt’s financial plans are consistent with, and support, its financial strategy. The provider has an adequately funded business plan, sufficient security in place, and is forecast to continue to meet its financial covenants under a wide range of adverse scenarios. Page 4 of 5 Regulatory Judgement Cobalt Housing Limited L4361 Annex 1: Definitions of Regulatory Processes 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 intelligence 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 intelligence gained from both Stability Checks and Reactive Engagement. Further Information For further details about these processes, please see ‘Regulating the Standards’ on https://www.rsh.gov.uk Page 5 of 5 .

Load more