Controversial lobby firm Deryn taken over weeks after having legal charge put on all its assets

Martin Shipton

A controversial Welsh lobbying firm whose acquisition by a much bigger public affairs company was announced this week had a legal charge placed on all its assets just three weeks before it was taken over, we can reveal.

Cardiff-based Deryn Consulting has been absorbed by London-based Cavendish Consulting.
Although the takeover has been spun as a positive development by both parties, there is more to the story.

Deryn, whose directors were former Welsh government special adviser Cathy Owens and ex-Plaid Cymru Assembly Member Nerys Evans, was involved in a series of damaging scandals over the years.

In 2017 the communications regulator Ofcom concluded that it broke its own procurement rules when it awarded a contract monitoring events at the then National Assembly to Deryn without competitive tendering and while two of Deryn’s senior figures – Nerys Evans and Huw Roberts, another former Labour special adviser – sat on Ofcom’s advisory committee for Wales.

Register

The row led to calls for a register of lobbyists to be established at the Assembly – something that has still not occurred.

Also in 2017 Deryn’s name cropped up in connection with the tragic suicide of Welsh Labour politician Carl Sargeant, who had been sacked from the Welsh Government’s Cabinet by the then First Minister Carwyn Jones after being accused of inappropriate behaviour towards a number of unnamed women. It later emerged that Mr Jones had lengthy telephone conversations with Cathy Owens and Jo Kiernan, another former Labour special adviser working for Deryn, immediately after being told of Mr Sargeant’s death.

In 2022 the then First Minister Mark Drakeford issued new guidance to Ministers about their contact with lobbyists after it was reported that two Cabinet Ministers – Julie James and Jeremy Miles – met Fiona Stewart, the owner of the Green Man Festival, at the home of Ms Owens during a period when controversy was raging over the Welsh Government’s decision to buy a £4.25m farm seven miles from the festival’s site in Powys to help the festival develop its business.

An investigation concluded the meeting was purely a social occasion, but stated that it “might have been prudent” for the Ministers to have declared their attendance at it to the First Minister.

Then in 2023 the chairman of the UK’s voluntary regulatory body for lobbyists was suspended after Deryn complained that he should not have ordered an inquiry into allegations made against it.

Child pornography

A complaint was made to the Public Affairs Board (PAB) about posts to X made by Cathy Owens and Nerys Evans in the wake of the jailing of former Welsh lobbyist Daran Hill for child pornography offences.

Ms Owens and Ms Evans both suggested without evidence that people close to Mr Hill had covered up his crimes.

Freedom of information campaigner Jamie Roberts complained that by making such unsubstantiated insinuations, the pair may have acted in breach of the PAB’s professional code, which places a high emphasis on honesty, transparency, and professional ethics.

Ms Owens and Ms Evans then complained that the chairman shouldn’t have brought in an independent adjudicator to investigate what they considered to be a vexatious complaint. The complaint was later dismissed, with an apology made to the two Deryn directors, but Mr Roberts claimed there had been a cover-up.

Earlier this week Ms Owens and Ms Evans said they were  “thrilled” to become part of Cavendish, a move which, they said, “aligns perfectly with our vision of delivering excellence for our clients and provides an exciting opportunity to contribute to [Cavendish’s] continued growth strategy of providing genuine expertise across the UK”.

Questions

A briefing document sent to Nation.Cymru by a business source who does not wish to be named said: “The recent announcement of Deryn Consulting’s acquisition by Cavendish Consulting raises critical questions about the financial state and governance of the Cardiff-based public affairs firm. Analysis of Companies House filings reveals that just weeks before the acquisition was announced, Deryn registered a charge on its assets with Triple Point Advance Leasing PLC. This suggests the company was in financial distress, possibly requiring an emergency loan to continue operations.

“On December 20 2024, Deryn registered a charge on all its assets, including both fixed and floating charges, with Triple Point Advance Leasing PLC.

“The inclusion of a ‘negative pledge’ in the 19-page charge document indicates restrictions on Deryn taking on further debt or selling assets without the lender’s consent.

“This charge was registered shortly before the public announcement of the acquisition, strongly suggesting that the loan was a last-ditch effort to manage financial challenges.

“The charge covers all of Deryn’s property and undertakings, highlighting a significant financial encumbrance. Such arrangements are indicative of severe cash flow issues or insolvency risks, with creditors requiring additional security to safeguard their loans.

“Deryn Consulting’s reputation has been tarnished over the years by a series of controversies:

* Allegations of improper lobbying activities and conflicts of interest involving its leadership.

* Questions about transparency and governance practices.

* A decline in client trust, exacerbated by reputational damage from these scandals.

“These issues likely eroded Deryn’s financial stability, driving clients away and contributing to the company’s eventual sale under distressed circumstances.”

The author of the briefing note suggested a number of questions to be put to Deryn, which we did:

*  Was the acquisition by Cavendish a fire sale? Can you confirm whether the company was financially solvent at the time of the sale?

* Why was an emergency loan required in December 2024? What were the immediate financial pressures that necessitated the charge to Triple Point Advance Leasing PLC?

* How does Deryn justify its spin on the acquisition? Why position the sale as an “exciting opportunity” when the evidence suggests otherwise?

Questions were also put to Cavendish:

* Why acquire a financially troubled firm? What due diligence was conducted to assess Deryn’s financial health and reputational risks?

* What was the purchase price, and what liabilities were inherited? Why has neither company disclosed the financial terms of the deal?

* Will Deryn’s controversies impact Cavendish’s operations? How does Cavendish plan to mitigate risks associated with Deryn’s past scandals?

Further questions were addressed to both companies:

* What are the implications for staff? How many redundancies, if any, will result from this acquisition?

* Why has there been no transparency about the deal? Is this lack of disclosure an attempt to obscure the true financial and operational state of Deryn?

The briefing note concluded: “The so-called ‘acquisition’ of Deryn Consulting by Cavendish Consulting appears to be a fire sale necessitated by financial distress. The emergency loan secured in December 2024 further underscores the precarious state of the business. Both companies must address these concerns transparently to rebuild trust and demonstrate accountability to their stakeholders.”

We invited Cathy Owens, Nerys Evans and Cavendish to respond, but they did not do so.

A public affairs industry veteran told Nation.Cymru: “Deryn Consulting’s actions over the years have not only tarnished their own reputation but have also cast a long shadow over the entire public affairs industry, particularly in Wales, where lobbying is now viewed by many as a toxic swamp. Their multiple scandals have reinforced negative stereotypes, undermining trust in the sector across the UK.”

Later we received a statement from Cavendish which said: “Triple Point is Cavendish’s acquisition funder, and when a new company (in this case, Deryn) joins the group, Triple Point automatically adds it to its security arrangements by registering such a charge.