10.10AM: Wembley builder doubles profits but exits £1.5bn UK project

Embattled construction giant Multiplex has exited the £1.5bn White City regeneration scheme.

The Australian firm, which is already under intense pressure due to delays on its Wembley stadium project, has handed White City to the scheme’s developer Westfield.

It is understood that Multiplex had until now been pursuing Westfield for £100m over delays on the White City development.

Multiplex CEO Andrew Roberts said: “We remain firmly committed to maintaining a sizeable UK business… We have been rationalising the number of assets acquired... Our focus has been on retaining a select number of key developments such as the Eden shopping centre in High Wycombe.”

He said the move was part of a strategy to “reposition” the firm’s UK workbook.

Multiplex announced today that it had doubled profits in the year to June to A$216.8m (£87.5m). The strong results were largely down to selling assets and an increase in the value of some the properties it owns.

The company said Wembley stadium would not be ready for test events until June 2007, which is two years later than planned.

Source

QS News