Exclusive: A settlement has been reached in the case brought by Leigh Davies against a multimillion-pound water supplier
A water supplier run by ex-Welsh Rugby Union chairman David Pickering has settled a court claim from former Wales rugby international Leigh Davies. The retired centre had accused Hydro Industries of cheating him out of more than £125,000.
Mr Davies, 48, earned 21 caps and played for teams including Scarlets and Ospreys. Mr Pickering, 64, was a flanker who captained Wales before managing the national team and then spending 11 years as WRU chairman. He is chairman of Hydro, a Carmarthenshire-based firm which provides drinking water in various countries and last year had more than £5.2m in net assets.
In his claim, which was due to go to trial at Cardiff county court, Mr Davies accused Hydro of “deception” over Middle-Eastern business deals and said he no longer trusted Mr Pickering or the other directors. But we understand a settlement has been reached and the claim withdrawn.
Hydro told WalesOnline: “The proceedings have been stayed on the basis of confidential terms that neither party is free to disclose or discuss.”
The business previously made headlines in 2021 having secured millions in UK Government funding after donating £71,000 to the then-ruling Tory party. One of its directors is journalist Guto Harri, who was a top aide to former Prime Minister Boris Johnson.
Mr Davies’ claim – first revealed by WalesOnline in January – alleged that he got to know people involved in Hydro after helping one of its directors with fitness training. Mr Davies allegedly introduced the directors to a friend he knew from charity rugby events in Dubai. That friend was a “close business partner and friend with the royal family in the United Arab Emirates”, the filing alleged.
According to Mr Davies’ claim his friend was “looking for a water purification company to assist with numerous projects in the UAE, Gulf states, and surrounding countries”. It added: “Following my initial introduction the potential for business grew and it became clear early on that there was massive potential for large contracts.”
The Neath-born star claimed he signed an agreement with Hydro’s directors in 2013 that would secure him 5% commission on any orders he introduced or helped negotiate. The following year Hydro announced what it described as a “£20m joint-venture deal” with Abu Dhabi business group M Partners for a water treatment project in the UAE.
Mr Davies saw himself as an “essential and continuing” link between Hydro and companies in the Gulf states. He said he represented Hydro at meetings and at corporate and charity events. “Hydro could not have existed, searched for new business opportunities, or entered into any new business contracts without my introductions,” the filing alleged.
It continued: “In 2016 Hydro wanted me to sign a new and different contract. This new contract would reduce my commission from 5% to 1%. Naturally this concerned me a little so I arranged to meet Wayne Preece [the chief executive officer of Hydro].”
Mr Davies and Mr Preece allegedly met at the Morgans Hotel in Swansea. “We discussed the new agreement and discussed all the new business opportunities that had been presented to Hydro since my introductions,” the claim read, adding that “lots” of potential contracts were mentioned including one with UAE waste management company Bee’ah. “I did not write any of them down as I took Wayne at his word that my interests and commission would be protected. I also believed I had some legal protection at that stage pursuant to the 2013 sales agreement.
“On that evening Wayne Preece provided me with a ‘forecast document’ which suggested I would be receiving significant commission payments that would steadily increase over the next five years and then settle out resulting in a significant annual amount that would be life-changing for me. Even though my commission would be reducing from 5% to 1% even at 1% the forecast suggested I would be earning around £250,000 a year for the next 20 years from my commission payments. Naturally I now deeply regret trusting Wayne Preece on that night.
“A few months later I signed the new 1% commission agreement in good faith. Unbeknown to me at the time negotiations were already ongoing and close to conclusion on the Bee’ah contract. I now know that the Bee’ah contract was signed on June 26, 2016, only a few weeks after I signed the 1% agreement. Had I still been entitled under my old contract at 5% I would have been entitled to a payment in excess of £125,000. I feel I was misled at the time but was not troubled as I had been assured that my 1% agreement would still bring me huge dividends.
“Knowing what I now know it is clear that Hydro were becoming well aware of the potential for business in the UAE and Gulf states and wider and wanted to reduce my commission from 5% to 1% and then actually had no intention to pay any commission, in fact wanted to remove me completely.”
The claim accuses Hydro of “deception” in allegedly failing to disclose the Bee’ah contract. “I was told by Wayne Preece that there were lots of contracts ‘in the pipeline’ but nothing had actually been signed yet and that no monies had been received by Hydro as yet. This clearly was not the case and Bee’ah was close to signing and monies were about to be received, some of which I was entitled to.”
The claim was for £28,000 based on Hydro’s alleged failures to pay 1% commission on deals after Mr Davies signed the 2016 contract but it also called for a ruling on whether he was entitled to 5%. When we inquired about the settlement Mr Davies declined to comment.
Hydro, based in Llangennech, had net assets of £5,248,577 last year, £10,523,965 the preceding year, and £12,647,257 the year before that. The firm specialises in water purification technology and in recent years has won contracts in Ecuador, Bangladesh, and Egypt.
