Legal dispute with Multiplex pushed steel contractor 拢17.7m into the red in 2007
The Wembley Stadium legal row with Multiplex has blown a 拢18.3m hole in the accounts of steelwork contractor Cleveland Bridge UK (CBUK).
In the year ended 31 December 2007, the company had to write down the value of the contract by 拢11m and took a hit of 拢7.3m in legal costs.
The dispute drove the company 拢17.7m into the red compared to a pre-tax profit of 拢155,000 in 2006.
Turnover was 拢26m after the exceptional 拢11m contract writedown.
The dispute centred on the steel specialist鈥檚 拢60m subcontract for steelwork, including the stadium鈥檚 arch. CBUK was found to be in breach of contract for walking off the project in 2004 following a dispute over payment.
In September, at a hearing that had been expected to conclude the four-year battle, Judge Jackson ruled that CBUK owed Multiplex 拢6.15m in damages for breach of contract, overpayments and interest. Multiplex had been seeking up to 拢25m.
Despite a warning from Jackson that the parties had 鈥渃ycled over the edge of a precipice into an abyss鈥� by continuing to fight each other in the courts, it is understood that CBUK is appealing up to five points in the judgment.
The dispute is one of a series of actions over the Wembley project. The stadium was completed a year late in 2007 at a cost of 拢757m, compared with an original guaranteed maximum of 拢458m.
The photocopying bill for trial was revealed to be 拢1m earlier this year.
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