Construction giant Mulitplex today issued another profit warning which reveals their losses on the new Wembley stadium are going to be significantly greater than $50 million – a big change from earlier claims it would break even.
Executive chairman John Roberts was listed as a billionaire on last week’s BRW Rich List, but he certainly isn’t anymore because today he’s fallen on his sword and will be replaced as chairman by Allan McDonald. The Roberts family has promised to cover $50 million of the Wembley loses personally, but that won’t be nearly enough based on today’s ASX announcement.
Multiplex even got a run at today’s Babcock and Brown annual meeting in Sydney, where I fired off a dozen questions at the board. Asked about construction risk on the $146 million redevelopment on Melbourne’s showgrounds, B&B CEO Phil Green revealed that Multiplex has just flagged some issues that need to be dealt with. Oh dear, the Multiplex empire really seems to be unravelling.
Multiplex shares have been suspended pending an investiagtion into the scale of the Wembley disaster, but when they resume trading it will be an absolute bloodbath.
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