Candidsky's troubled year after 5 Villages Group takeover: client losses and cashflow squeeze

Summary

Candidsky, a Manchester digital agency, has experienced significant disruption following its acquisition by 5 Villages Group in May 2025. The parent company has acknowledged client departures, staff resignations, and cashflow pressures during what it describes as a 'challenging trading period'. CEO David Vernon resigned less than a year into his promotion, with Employment Tribunal proceedings now underway.

The agency lost clients after senior team members departed, with former employees reporting that clients grew concerned about staff turnover on their accounts. 5 Villages Group confirmed salary payment delays occurred across parts of the group between April and June 2026, attributed to short-term cashflow issues and customer payment timing. The group declined to disclose current headcount figures but said Candidsky now operates using permanent staff, specialist consultants, and shared resources across group marketing businesses.

Despite the upheaval, 5 Villages Group maintains it has made material investment in the business through staff bonuses and pay increases, and expects Candidsky to return to profitability this financial year. The group rejected suggestions that departures were solely due to culture or management concerns, though former employees described a difficult environment for winning new business with a substantially reduced workforce.

Common questions

What is this article about?

Manchester digital agency Candidsky has lost clients and shed senior staff in the year since its May 2025 acquisition by 5 Villages Group, with the parent company acknowledging tight cashflow and delayed salary payments. The group expects the agency to return to profitability this year despite the turbulent period.

When was this published?

This article was published on 12 August 2026.

Who published this article?

This article was published by Prolific North.