Phoenix Electrical: fit and healthy

Wembley Stadium contractor Phoenix Electrical has denied claims that it is in financial difficulty, following rumours circulating the industry that the firm had gone into administration and had been sold for £1 to Wembley main contractor Multiplex.

Joint managing director Brian Ingram furiously denied the rumours, saying that there is no substance to the claims. Ingram said that Phoenix has been taking calls from clients, suppliers and main contractors who are worried about whether the company can pay its bills. “This is a serious business issue,” said Ingram. “It is beginning to cost us and we believe that we have lost some major jobs because of it.”

The source of the rumours is not clear, but it is believed that rival firms could be to blame. David Rosedon, key accounts manager in sales and marketing for Phoenix, said: “Rumours got around that were totally false and we thought it was time to get something in print to set them straight. Phoenix Electrical is fit and healthy.”

The electrical contractor has reassured Wembley main contractor Multiplex of its financial stability. Ingram said: “We have completed more than half of our contract. Phoenix is going from strength to strength on the project.”

Meanwhile, Multiplex is itself beset with problems on Wembley Stadium. Multiplex announced recently that is expected to make a £45 million loss on the project. The stadium was due to be handed over at the end of January 2006, but completion is not now expected until the end of March 2006.

Major disruptions followed the departure of the steel contractor Cleveland Bridge last year and various subcontractors, including Phoenix and mechanical contractor MJN Colston, are said to be filing claims for extension of time and costs following the 15-week delay.