Cleveland Bridge's loss following legal battle with Multiplex represents almost half of firm's turnover
Former Wembley steel contractor Cleveland Bridge has suffered a loss of over £11m in its latest results, representing almost half its turnover.
The specialist contractor, which is currently attempting to settle a multi-million pound legal battle with Wembley contractor Multiplex over delays on the troubled project, has posted a loss of £11.8m for the year to 31 December 2005. The firm’s turnover during the period was £25.6m.
In results posted at Companies House, Cleveland Bridge said that the group was dependent on its ultimate parent company, Saudi firm the Al Rushaid Investment Corporation, to enable it to continue to operate and meet its liabilities as they fall due.
In a directors report, the company said: “2005 was again a difficult time for the company with disputes on two major projects having a major impact on the company results and senior management resource…[However] the directors firmly believe the business has a long term future and will increase its market size and strength during the short to medium term.”
Cleveland Bridge was this summer found guilty of breaching its Wembley contract by walking off the project in August 2004, although the judge decided in favour of the firm on other issues. The subcontractor had been in dispute with Multiplex over valuations and delays on the project.