A NEW war of words broke out last night between North-East steel company Cleveland Bridge and its former employer at the new Wembley Stadium.

Australian company Multiplex revealed that the Darlington-based company's withdrawal from the north London stadium last year meant it would probably only break even on the flagship project.

Multiplex's shares plunged by about a fifth on the Australian stock exchange after it said results at its construction division would be below expectations due to higher costs resulting from the change in steel contractor.

The group, which has previously worked on the Telstra stadium, in Sydney, said any profits would depend on the outcome of a legal dispute with Cleveland Bridge, due to be heard later this year at the Court of Technology and Construction, in London.

Multiplex has already had to pay nearly £5m to Cleveland Bridge after mediation between the two companies.

Cleveland Bridge, which erected Wembley's 350-metre arch, said Multiplex still owed it a significant sum of money for the work it completed on the multi-million pound stadium.

The company was replaced at Wembley by Dutch group Hollandia.

Multiplex said: "The previously announced change in steel contractor at Wembley national stadium has resulted in litigation and increasing project costs.

"Management have written back profit on this project to a break-even position."

A statement issued by Cleveland Bridge said: "It is extraordinary that a giant, experienced, publicly-listed construction company like Multiplex should, in its media statements today, find itself, by implication, laying its financial woes at the foot of a sub-contractor of whom it has stated on many occasions to be of no significance or impact to the timely or profitable delivery of the Wembley national stadium."

Despite the problems, Multiplex said the bulk of its other UK construction projects - including west London's White City redevelopment scheme - were performing strongly.

Construction of the £757m Wembley stadium is about two-thirds finished, with a completion date of next January. It is due to be opened in time for the 2006 FA Cup Final.