Multiplex says losses will soar by £25m if talks with steel contractor Hollandia fail.

Multiplex chairman Allan McDonald has warned that the contractor's losses on the Wembley stadium project could spiral to over £73m.

McDonald revealed at the company's AGM in Sydney that Multiplex is at an advanced stage of negotiations with its steelwork contractor Hollandia in a bid to cap costs on the steel used in the project.

However, he warned that if talks fail it could lead to an extra loss of up to £25m on the current cost of steelwork for the project. This would see the £48.6m losses on the project that Multiplex has already announced soar to £73.6m.

Wembley woes have seen the firm's construction division slump to a £26m pre-tax loss from a £31m profit in the year to June.

But McDonald added that Multiplex is still confident of completing work in time for the stadium to host the 2006 FA Cup Final.