Cleveland Bridge reported a £2M profit on last year’s activities this week, but remains over £26M in debt overall following its legal tussle with Multiplex over Wembley stadium.
The company had increased its turnover from £26M to £46.4M and posted a profit of £2M on ordinary activities after taxation. However, it remained in debt as it had written down the value of the £52M Wembley contract by £11M in 2007 and took a £4.7M hit in legal costs.
According to the auditors, Cleveland Bridge is in the final process of litigation with an appeal in place due to the valuation of the work on the Wembley contract, but the directors are confident that the litigation will soon be successfully concluded.
At the balance sheet date Cleveland Bridge had net liabilities of £26.3M and consequently the group is dependent on continuing financial support being made available by the ultimate parent company, the Al-Rushaid Investment Company, Saudi Arabia to enable it to continue to operate and meet its liabilities as they fall due, according to the results statement.
The company was found to be in breach of its contract to fabricate the steelwork for Wembley stadium when it walked off the project in 2004 following a dispute over payment. Wembley stadium contractor Multiplex was awarded over £6M in the culmination of its legal battle in September last year
Multiplex is now pursuing stadium designer Mott Macdonald through the courts - it launched a mammoth £253M claim against the designer in December last year.