Multiplex clear of Wembley woes - £220m profit unveiled

Multiplex’s Wembley muddles are over. The Australian property group’s latest annual results show no addition to the £193m hit already taken on the troubled football stadium project.

The group’s latest results (12 months to 30 June) show net profit well ahead at £220m (comparable figure in previous year: £87m). Turnover was little changed at £1.4bn.

Multiplex has four operating wings. Of these, the construction division chipped into group profit with a contribution of £29m which represents a useful turnaround from the £130m loss racked up in 2006.

Globally, the construction portfolio grew in all parts of the world and now runs to 47 projects with a total contract value of £3.1bn. The workload is spread across Australia, New Zealand, the Middle East and the UK.

Post Wembley and White City, Multiplex’s UK workbook is being progressively replenished.

The construction contract on the White City project was transferred to Westfield in August 2006, who thereafter assumed ongoing responsibility for the project.

Wembley National Stadium was finished in March 2007. “The overall loss position remained unchanged,” said Multiplex. Settlement with the client was reached in October 2006 though “work has continued in support of other claims against third parties where it is intended to pursue the group’s full entitlement”.

James Tuckey, Multiplex’s chairman of Operations UK was paid £475,000 though this was topped up with a further £335,000 as his profit-share bonus.

Martin Tidd, former managing director of Multiplex’s Construction Division UK who resigned in March, took termination benefits worth £620,000 in addition to his earnings to that point of £270,000.