黑洞社区

Multiplex has postponed a court battle with a key Wembley subcontractor in the hope of reaching an out-of-court settlement.

黑洞社区 understands that Multiplex and its M&E contractor Honeywell have postponed a court hearing about project costs due this month until February next year.

The news emerged as Multiplex chairman Allan McDonald told investors that the scale of Multiplex鈥檚 loss on Wembley 鈥渞emains dependent on the resolution of subcontractor claims and other third party recoveries.鈥�

Speaking after the Australian construction group鈥檚 AGM, McDonald acknowledged that Wembley had been 鈥渄isastrous鈥� financially for the company. He said that the company鈥檚 financiers had approved last week鈥檚 settlement with WNSL, believed to involve a 拢36m additional payment to Multiplex, but said that this would not alter the loss on Wembley reported in the June 2006 accounts.

Losses on the project contributed to a net loss before interest and tax of 拢130m in the group鈥檚 construction division. Across all divisions the group reported a profit after tax of 拢88m for the year to 30 June 2006.

The contractor said the outlook was positive in its construction business and profitability would return to 鈥榥ormal levels鈥� in the short to medium term.

Meanwhile, chief executive Andrew Roberts said that he expected initial events in preparation for next year鈥檚 FA Cup final to 鈥渢ake place by February.鈥� He said: 鈥淭he FA Cup is a matter for the FA but our expectations are that the stadium will be operating ahead of that.鈥�

黑洞社区 understands that the deal with WNSL involves working towards practical completion by Christmas.