ENGINEERING company Cleveland Bridge last night remained cautious about predicting a major revival - despite winning an £11m contract.

The Darlington company, which last year built the iconic steel arch at Wembley before becoming locked in a dispute with the ground's main contractor, Multiplex, has also returned to profit for the first time since 2001.

Trade magazine Construction News reports that the company recovered from a £1.3m loss in 2003 to a profit of £1.1m last year -- the year that it left the Wembley development after a dispute with Australian group Multiplex.

Cleveland, which employs about 150 people in Darlington, has won an £11m contract with Mowlem to begin fabricating the 6,500 tonnes of steel needed for the south stand at Twickenham, in London.

Work will begin in the first quarter of next year.

Managing director Brian Rogan told Construction News: "We were suffering after Wembley, but clients are starting to come back to us.

"There's a lot more confidence now."

But Mr Rogan was remaining cautious last night about predicting a revival for Cleveland Bridge.

He told The Northern Echo: "Cleveland Bridge is gently finding its feet. This is an important contract and it is fair to say that things are positively moving forward."

The south stand will increase Twickenham's capacity from 75,000 to 82,000 once it is completed in time for next year's autumn internationals between England and Australia, New Zealand and South Africa.

Cleveland is also carrying out the steelwork for an adjoining commercial development that will include a hotel.

Despite returning to the black, Cleveland Bridge's turnover slumped nearly £40m last year because of the effect of losing the £60m Wembley contract.

The company said that the business depended on financial support from its parent group, Saudi Arabian company Al Rushaid Investment.

Multiplex and Cleveland Bridge are suing each other for about £25m and are due to appear in the High Court in April.

* Multiplex has already paid nearly £5m to Cleveland Bridge.

More than 300 workers were made redundant at Cleveland following the initial dispute, and the number of shopfloor workers dropped to its lowest level in 40 years.