Why we are engaging with Blackwood
We are engaging with Blackwood about its financial management and the transfer of engagements from Abbeyfield Scotland.
In November 2024 we assessed that Blackwood was non-compliant and working towards compliance with regulatory requirements including the Standards of Governance and Financial Management (the Standards). Blackwood worked openly and constructively with us to deliver the necessary improvements in its governance and financial management to achieve compliance. It has completed this work and provided us with assurance that it now meets regulatory requirements including the Standards.
Following a successful ballot of its tenants, Abbeyfield Scotland transferred its engagements to Blackwood in August 2022 and was removed from the Register of Social Landlords in January 2023. In April 2024, Blackwood told us that due to high costs, Blackwood’s changed financial position, and the continued low demand for some of these properties, it would need to remodel how it provided services to some former Abbeyfield tenants. Blackwood has told us that it is continuing to consult with tenants as it implements its plans for the former Abbeyfield homes. We are engaging with Blackwood as it implements these changes.
During 2025/26 we reviewed Blackwood’s management accounts and cash flow projections to gain assurance about its financial management. We continue to require assurance about Blackwood’s long term viability and its capacity to absorb additional financial pressures as it remodels parts of its business.
What Blackwood must do
Blackwood must:
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send us by 30 April 2026:
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30 year financial projections comprising a statement of comprehensive income, a statement of financial position and a statement of cash flows, complete with assumptions and explanatory narrative;
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a comparison of projected financial loan covenants against current covenant requirements;
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financial sensitivity analysis which considers the key risks, the mitigation strategies for these risks and a comparison of the resultant covenant calculations with the actual covenant requirements;
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report to the Board in respect of the approved 30 year projections, sensitivity analysis and covenant compliance; and
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evidence of how it demonstrates affordability for its tenants.
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send us quarterly updates on progress with remodelling services for former Abbeyfield tenants.
What we will do
We will:
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review the updates on progress with remodelling services for former Abbeyfield tenants and engage as necessary;
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review the financial information and engage as necessary; and
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update our published engagement plan in the light of any material change to our planned engagement with Blackwood.
Regulatory Returns
Blackwood must provide us with the following annual regulatory returns and alerts us to notifiable events as appropriate:
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Annual Assurance Statement;
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audited financial statements and external auditor’s management letter;
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loan portfolio return;
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five year financial projections; and
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Annual Return on the Charter.
It should also notify us of any material changes to its Annual Assurance Statement, and any tenant and resident safety matter which has been reported to or is being investigated by the Health and Safety Executive or reports from regulatory or statutory authorities or insurance providers, relating to safety concerns.