After the demise of B-Movie he began working with former Bauhaus vocalist Peter Murphy, co-writing many tracks on Murphy's albums "Love Hysteria", "Deep", "Holy Smoke" and "Cascade". This led to a friendship with producer Pascal Gabriel, and Statham & Gabriel along with singer Lisa Lamb formed the electro-pop group Peach, who were signed to Mute Records in 1996.
Peach split up soon after the release of their album Audiopeach, and Statham started to work with then unsigned singer Dido, co-writing her songs "Here With Me" and "I'm No Angel". "Here With Me" went on to become a world wide hit and the album No Angel eventually sold 13 million copies.
The next few years were spent collaborating with a number of artists including two Massive Attack vocalists Shara Nelson and Dot Allison (co-writing her single "Close Your Eyes), and Lena Fiagby, before heading back to pop with Kylie on her hit album Fever. At the same time he began collaborating with well known artist and art curator Victor de Circasia who encouraged him to work on visual and audio installations in galleries around the world. From 2001 Statham has had many installations in European galleries and collaborated with artists in many different media.