Building firm hit by Wembley losses

Wembley Stadium construction firm Multiplex posted “very disappointing” results today as it counted the cost of problems on the flagship project.

The group made substantial losses on the football stadium as the Australian firm’s construction division revealed a full-year deficit of AUS$62m (€38.4m), compared with profits of AUS$73.2m (€45.4m) in 2004.

The stadium scheme has been hit by delays and cost-overruns, although Multiplex said it was on track to hand over the stadium by the recently-revised deadline of the end of March.

It is under pressure to complete the scheme in time so preparations can begin for the FA Cup Final, which takes place in May.

It added today it had set aside a further AUS$8.6m (€5.3m) as a contingency against risks that remain until the completion of the stadium, which will hold 90,000 spectators as the updated home of the England football team.

Overall, Multiplex made profits of AUS$148.1m (€91.8m) but this did not please chief executive Andrew Roberts.

He said: “The result is very disappointing and has been significantly impacted by the substantial losses experienced at Wembley National Stadium.

“It is unfortunate that the Wembley performance undermined the strong contribution from other parts of the group.”

Multiplex said new risk control measures had been introduced in the construction division and that it now only had one loss-making project on its books, which was Wembley.

Among problems to affect the stadium project – worth around AUS$1.2bn (€743.4m) to the company – Multiplex incurred litigation and higher costs after a change of steel contractor.

The Roberts family, which founded the firm and holds a 26% stake in it, have covered losses up to AUS$50m (€31m).