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Multiplex sees red after Wembley losses

23/02/2006

The Australian construction firm responsible for rebuilding London's Wembley stadium today posted a large first-half loss as spiralling construction costs continue to hit the firm where it hurts.

Multiplex, which earlier this week acknowledged that the new Wembley would not be completed in time for the May FA Cup final, posted a £50 million loss for its six months to December 31st.

The Australian firm said that the loss was "extremely disappointing", as it calculated that total losses sustained through the stadium project now stood at £106 million.

Following the announcement, shares in the firm shed eight per cent to hit a four-month low. While over the course of 2005 the firm lost 42 per cent of its stock market value.

Chief executive Andrew Roberts said: "We believe that as we put Wembley behind us…we can expect strong levels of profitability from our construction business."

Multiplex holds that it will not incur further losses as a result of the Wembley project, as it swallowed the £106 million after tax charge in this half so as to channel all past and future penalties for construction delays.

The firm said that it was not in danger of bankruptcy, although its decision is costing it £120,000 per day for each day the project runs beyond the end of last month.

Multiplex originally signed a £445 million contract to build Wembley, but cost blow-outs have plagued the project.

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