Multiplex calls it break-even on Wembley

DEVELOPER Multiplex has admitted it will only just break even on the £750m Wembley Stadium project, reversing a previously booked profit on the project and sending its shares into a tailspin.

Multiplex said litigation and higher costs from its change of steel contractor last year were to blame. 'We have written the project back to a break-even situation,' chief executive Andrew Roberts said.

Construction of the 90,000-seat stadium stopped last year because of a dispute with steel contractor Cleveland Bridge, which designed and built the stadium's signature arch. The company eventually replaced it with Hollandia of the Netherlands.

At the time, Multiplex predicted it would complete the project ahead of schedule and that the dispute would not hit group earnings.

But Roberts said today that Multiplex was pursuing claims against contracting parties which, if successful, would push the project back into profit. Analysts had previously expected Wembley to generate more than £12m a year in earnings this year and next. The company still expects to complete the project by December.

The Wembley confession sent Multiplex shares tumbling 16% to A$4.69. The company had first-half net profit of A$36.9m (£15.2m) and expects group full-year profit to be A$235.3m.