The Regulator of Social Housing (RSH) has published a Regulatory Notice for Auxesia Homes Limited, a small for-profit registered provider based in Cheshire, which works across the North of England and prioritises former and serving members of the Armed Forces, the NHS and the emergency services.

The RSH had placed Auxesia on its Gradings Under Review (GUR) list in August 2022, following a review of its latest Financial Statements for the year ended 30 September 2021, which disclosed a pre-tax loss of £511,417, an insolvent balance sheet and significant capital commitments.

The RSH has concluded that Auxesia:

• is not compliant with the Governance and Financial Viability Standard
• has failed to demonstrate that it has an appropriate, robust and prudent risk and control framework in place which requires that there is access to sufficient liquidity at all times
• has failed to assess, manage, and address risks to ensure the long-term viability of the registered provider including ensuring social assets are protected by carrying out detailed and robust stress testing, and before taking on new liabilities, ensuring it understands and manages the likely impact on current and future business and regulatory compliance and
• has not demonstrated (through its Board) that it is managing its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight.

All of the Regulatory Judgements, Regulatory Notices and GUR listings published by the RSH can be viewed on the RSH’s website here.