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Lime render is certainly porous - cement, not so much. If it cracks & lets water in, it's not going to let it out.
The goretex-like stuff they sell doesn't either, and also ruins the softer brickwork of older houses.
How long ago did you dig the trench?
[Edit] Just checked the DIY thread - 2 weeks doesn't seem nearly long enough for damp troubleshooting - I've given our damp problems 6 months plus to see if things are working out.
The green bit could be water being splashed up the wall -the gravel should stop that though (assuming there's no guttering problems above)..
What's on the inside of the house - what flooring is there?
you could argue render is porous both ways whereas they are trying to advertise some sort of goretex-like one way porous cover
But I agree, I didn't like the sound of it either way, was very much a sales pitch