Exclusive: In the first in a series of Prolific North investigations, the Manchester agency’s parent company acknowledges delayed salaries, outstanding pension contributions and an “error of judgement” over a private hotel meeting with an employee, while strongly denying allegations of sexual harassment and claiming former leaders may be engaged in a campaign to discredit its chairman.
A Manchester digital agency once promising to become “the best search and creative agency in the North” has been hit by delayed salaries, outstanding pension contributions, client losses, a dramatic reduction in staff and a sexual harassment grievance against the owner of its parent company.
An investigation by Prolific North has uncovered extensive concerns about Candidsky following the takeover of the agency in Spring 2025 by 5 Villages Group.
Prolific North has spoken to several people with current or former links to Candidsky, as well as individuals connected to other 5 Villages Group companies. All asked to remain anonymous.
We have also reviewed dozens of documents, emails, WhatsApp messages and audio recordings, including material submitted as part of an HR process after a formal grievance was raised against 5 Villages Group chairman Don Iro.
The group has acknowledged delayed salary payments, late and outstanding pension contributions, significant staff departures, lost clients, tight cashflow and a “challenging trading period”.
It has also confirmed that an HR process began after a workplace complaint was made against Iro in 2025, around two months after the takeover.
Iro unequivocally denies sexually harassing the former employee or behaving improperly towards her. He accepts that personally arranging a private meeting with her at a hotel to discuss what he describes as a potential employment concern was an “error of judgement”, but says the meeting was convened to discuss that concern and that nothing inappropriate occurred.
The HR process did not reach a final determination and no formal finding was made against Iro, according to Southhampton-based 5 Villages Group.
The group has also questioned the motivations of some former employees, pointing to a subsequent commercial dispute with former Candidsky chief executive David Vernon. Prolific North previously reported on Vernon’s departure in March, when he said the “conduct and environment” within the company had made it impossible for him to continue in the role.
He also said he was pursuing legal action relating to his exit, and Prolific North now understands that an Employment Tribunal claim has been lodged. The claim has not been determined.
Throughout this investigation, Prolific North has sought to distinguish clearly between matters acknowledged by the company, allegations contained in a formal grievance, information corroborated by multiple sources, and the denials issued by 5 Villages Group and Iro.
Payroll and pension problems acknowledged
The investigation began after several former employees raised concerns about delayed salary payments, pension contributions and the agency’s financial position.
In response to questions from Prolific North, 5 Villages Group acknowledged that salary payments had been delayed across parts of the group during April, May and June this year.
It said: “There have been occasions in recent months when salary payments across parts of the 5 Villages Group have been delayed. These occurred at different points during April, May and June 2026 and arose from short-term cashflow pressures, including the timing of receipts from key customers.”
The company said the substantial majority of affected employees had been paid by 9 July but confirmed that payments remained outstanding to two former employees.
It added: “We recognise the disruption and concern that any delay in salary payments can cause and regret the impact on those affected.”
The group also acknowledged that pension contributions had not always been remitted to providers on time.
It said: “Some pension contributions have also been remitted later than intended, and certain amounts remain outstanding.”
The company said there had been no enquiries or investigations by The Pensions Regulator or any pension provider and that outstanding payments were being treated as a priority.
Former employees described repeated uncertainty around paydays.
One told Prolific North: “Payday is a problem every month.”
The source said staff could sometimes be told shortly before payday that their salaries would be delayed, creating particular anxiety for employees living from one monthly payment to the next. The source was ultimately paid all outstanding wages.
In a later response, 5 Villages Group said the payroll and pension issues had been “substantially addressed” following Iro’s appointment of a new payroll provider.
Staff departures and client losses
Former senior figures told Prolific North that Candidsky employed around 14 people before a succession of departures dramatically reduced the permanent workforce in recent months.
Another former employee said only three employees remained when they left earlier this year.
5 Villages Group accepted that the agency had undergone a significant period of change but rejected suggestions that this could be attributed solely to management or culture.
It said: “Candidsky has undergone a significant period of change over the past year. The change has principally resulted from resignations, together with one performance-related dismissal.”
The company said the agency now relied on a combination of permanent staff, specialist consultants and resources shared across group businesses.
It also acknowledged that Candidsky had lost clients.
Timeline
May 2025 — 5 Villages Group acquires Candidsky
July 2025 — formal grievance lodged and HR process begins
March 2026 — Vernon resigns
April–June 2026 — delayed salaries
May 2026 — Marcom acquired
August 2026 — Prolific North investigation
The said: “Candidsky has experienced a challenging trading period. A number of clients left following the departure of members of the senior team last year, and the business is currently rebuilding its leadership, client base and market position.”
To its credit, the Group candidly commented: “Candidsky is not presently trading in line with its original expectations however it is expected to be profitable this financial year. Cashflow remains tight and has, at times, been affected by the timing of customer receipts.”
It also said it had made “material investment” in the business, including through staff bonuses and pay increases across most of the team.
5 Villages Group said Candidsky was not in administration or subject to formal insolvency proceedings and that there were no current plans to close the agency. The group acquired Bath-based B2B agency Marcom in May 2026, describing the deal at the time as an important expansion of its combined capabilities.
From optimism to investigation
The problems have emerged little more than a year after 5 Villages Group acquired Candidsky.
At the time, the agency described the takeover as the beginning of an ambitious new chapter. It posted on LinkedIn: “When one door closes, another opens & joining a successful group like the 5 Villages Group means there’s nothing holding us back from becoming the best search and creative agency in the North!”
Managing director David Vernon was subsequently promoted to chief executive. But less than a year later, he resigned with a “heavy heart” and said he was launching legal action against the company.
In March, Vernon told Prolific North: “While I have seen some inaccurate narratives suggesting otherwise, my departure was a decision I took to prioritise my professional standards and integrity.”
He added that legal proceedings relating to his departure were under way.
Prolific North has since seen Employment Tribunal documentation showing a claim has now been submitted.
The acceptance of a tribunal claim is an administrative step and does not establish that the allegations made within it are proven. It remains to be seen if Candidsky defends the claim (successfully or not).
HR investigation after sexual harassment complaint
Alongside the financial and operational concerns, Prolific North has reviewed a substantial body of material relating to a formal workplace grievance submitted in July 2025 by a Candidsky employee.
The employee will not be named for legal reasons. All reporting relating to her identity has been handled on the basis that her anonymity should be respected and is protected.
The grievance alleged repeated ‘sexual harassment, coercive behaviour and abuse of power’ by Iro following a private meeting at the hotel after what had been presented as a business dinner.
Emails reviewed by Prolific North show Candidsky began an internal HR process and approved paid leave for the employee while the investigation continued.
5 Villages Group confirms the complaint was investigated internally but says it was not an independent investigation and did not reach a final conclusion because the complainant left the business before it concluded.
The company said: “Mr Iro denies sexually harassing the former employee or acting towards her with any sexual or otherwise improper motive.”
It said Iro had arranged the meeting because he had received information raising what he believed was a potential employment-related concern involving the employee.
The company added: “He accepts that attempting to investigate the matter personally, and choosing that setting for the discussion, was an error of judgement. He nevertheless strongly denies that the meeting had a sexual purpose or that he sexually harassed or otherwise behaved improperly towards the employee.”
The group declined to address specific content described from the recordings without being provided with the complete recordings, metadata and associated communications.
It said Iro understood the recordings had been made without his knowledge and was concerned they could have been “edited, selectively presented, or separated from their surrounding context”.
Prolific North has not provided confidential source material to the group, but the substance of the allegations was put to Iro and 5 Villages Group over several rounds of correspondence.
The company also acknowledged Iro agreed to an informal suggestion that he should avoid attending Candidsky’s offices while the matter “blew over”, but denied any formal restriction or disciplinary sanction had been imposed.
Company says allegations should be viewed in wider context
5 Villages Group argues that events should be considered alongside what it describes as a wider commercial dispute involving former chief executive Vernon.
It says some former employees subsequently joined Search Theory, a business established after Vernon’s departure, and questions whether the timing of renewed allegations is connected to that dispute.
The company stressed this was its assessment rather than an established fact.
It said: “Taken as a whole, we consider that this may reflect a concerted, long-term effort to discredit Mr Iro.”
In a statement to Prolific North, Vernon said: “My departure from Candidsky was driven entirely by serious workplace concerns and statutory governance issues, as outlined in my formal tribunal filings. Framing my resignation or tribunal claim as a ‘commercial dispute’ is inaccurate.”
How Prolific North reported this story
This investigation is based on:
* interviews with six people connected to Candidsky;
* interviews with people connected to other 5 Villages Group companies;
* dozens of documents; emails; WhatsApp messages; audio recordings;
* the formal grievance;
* Employment Tribunal documentation;
* three detailed responses from 5 Villages Group.
5 Villages Group and Don Iro were given repeated opportunities over several weeks to respond to every significant allegation before publication, which, to the Group’s credit, it engaged in throughout.
He added: “The establishment of Search Theory Group Ltd was executed in full compliance with my legal duties. Our sole focus is on delivering exceptional search marketing for our clients and providing a transparent, supportive workplace culture for our team.
“I have no comment regarding 5 Villages Group’s statements on third-party matters, and I look forward to the Employment Tribunal resolving these issues based on the objective evidence.”
Prolific North’s investigation is not based on a single source. It draws on interviews with multiple people connected to Candidsky and the wider 5 Villages Group, documentary and audio evidence reviewed by this publication, publicly available records and extensive correspondence with 5 Villages Group conducted over several weeks.
Prolific North put detailed allegations to 5 Villages Group over several rounds of correspondence extending across multiple weeks. The company was invited to respond to each significant allegation raised by sources and to provide any documentary material it believed contradicted the evidence reviewed by Prolific North.
Prolific North has carried verbatim responses from the Group, which it acknowledges has been forthcoming and candid in its replies which have been appropriately published for proper balance. Prolific North has also contacted Don Iro directly but has not received a response. All responses have been provided by Buddhika Amis, of Candidsky, on behalf of 5 Villages Group.
Tomorrow: Prolific North examines the formal grievance and the HR investigation into allegations made against Don Iro, including what the documents show about how the complaint was handled.
