Decision

Current regulatory judgement: Look Ahead Care and Support Limited (29 November 2023)

Updated 29 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Look Ahead Care and Support Limited
• Regulatory code: LH0013
• Publication date: 29 November 2023
• Governance grade: G2
• Viability grade: V2
• Reason for publication: Governance downgrade and viability regrade
• Regulatory route: Stability Check and Reactive Engagement

Regulatory judgement

This regulatory judgement downgrades our previous published assessment of Look Ahead Care and Support Limited’s governance from G1 to G2 and regrades its financial viability from V1 to V2.

Look Ahead Care and Support Limited (Look Ahead) continues to meet the requirements on governance set out in the Governance and Financial Viability Standard. However, there are weaknesses in Look Ahead’s business planning, and risk and control framework. A decision to enter into a new funding agreement was taken without robust consideration and full understanding of the associated covenant terms. This meant that Look Ahead has needed to engage with a funder to agree amendments prior to covenant testing; this agreement is now in place. Improvement in Look Ahead’s financial forecasting, monitoring and oversight of financial performance, and management of treasury risks is needed. Look Ahead has work in progress to review its strategic risk approach so that its board can demonstrate it has effective oversight in future.

The regulator has assurance that Look Ahead continues to comply with the financial viability elements of the Governance and Financial Viability Standard. It has an adequately funded business plan and sufficient security in place, however, interest cover ratios are weakened. Look Ahead continues to invest in existing stock and is amending its operating model in response to the negative influence of economic conditions. These factors, set in the context of wider economic pressures in relation to inflation and interest rates, means Look Ahead’s capacity to respond to adverse events is reduced.

Other providers included in the judgement

None

About the provider

Origins

Look Ahead is a charitable community benefit society. Its principal activities are the provision of social housing, management of properties on behalf of other providers, and delivery of care and support contracts.

Registered Entities

Look Ahead is the registered parent of the group.

Unregistered Entities

There are four unregistered entities in the group:

• Look Ahead Developments Limited, provides construction, and design and build services to Look Ahead;

• Larch Residential Services, provides 17 residential lettings;

• Blythson Limited, provides residential care and supported living; and

• Kingswood Care Services, provides residential care and supported living.

Geographic Spread and Scale

Look Ahead operates across London and the south east of England in 37 local authority areas. It owns and manages around 1,264 homes and a further 1,295 homes on behalf of other landlords.

Staffing and Turnover

For the year ended 31 March 2023, Look Ahead reported a group turnover of £79.3m and employed 1,170 full-time equivalent staff.

Development

Look Ahead aims to deliver 88 properties by March 2028 through a mixture of development and property acquisition.

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.

Note: The use of an asterisk (*) against a grade indicates that the assessment refers to a provider that is designated as being for-profit.

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.