does multiplex have the faintest idea?
Wembley stadium's wobbly finish date Terry McCrann 05apr06
WHEN does Multiplex really believe it will finish London's Wembley stadium? Does it sincerely have the faintest idea?
Perhaps it could try to break two habits of a listed lifetime. For once, to actually keep the market informed. To try to demonstrate it has some understanding of its own business.
It's probably long past time for ASIC or the ASX or both to at least ask Multiplex to stop misleading its shareholders and the market.
Misleading them either deliberately; or what is equally possible and actually worse, doing so inadvertently.
Apart from discharging their responsibilities to hold Multiplex to account for its past utterly unacceptable behaviour.
Do ASIC/ASX understand this? Do they even care?
Last Friday, Multiplex issued a 'Wembley update'. It asserted that "substantial completion of contractor's works is now anticipated by the end of June".
"Substantial completion?" Ah, that would leave "certain works and certain activities such as commissioning and cleaning still to be completed after this date."
Multiplex went on to claim that it could legitimately extend the contract completion date until "at least September". And had so, "formally advised its client".
Yet nowhere in the 600-odd word statement was any reference made to when it thought it would actually complete the stadium.
In the way that most of us would understand the word "completion". Like, the stadium could actually be, well, used.
Consider, if the MCG had been "substantially completed" before the Commonwealth Games. But the toilets weren't installed and there was just a 'bit' of building equipment still 'lying about'.
In the absence of Multiplex telling us -- being competent to tell us? -- when it might finish the stadium, others have been all too happy to fill the gap.
In particular, the client. The British Football Association.
The FA had previously, wisely, opted not to rely on Multiplex getting it done in time for the FA Cup final.
Wisely in more ways than one. A crowd of 100,000 might have brought the roof down. Literally.
Now the FA has moved all matches planned for all of 2006 to other venues. Not only matches in July/August after 'substantial completion' but matches in October after the final(?) completion date.
And then there's the fascinating claim on a British blog. Claiming that someone "at a very senior level with the (Wembley) construction" told the blogger some weeks ago that it would be announced end-March that the stadium would not be ready in 2006. Broadly, as per Friday's statement.
Further, there was no chance whatsoever that the stadium would be ready until the summer (that's mid) 2007. And in the -- construction -- source's opinion, almost no chance of it being ready until 2008.
And here's the killer claim. That the announcement of the delays would be staggered for PR reasons, so that each delay seemed incremental. Rather than say upfront: two-year delay.
Now this is all hearsay; and the blogger has no particular strength in finance or business. But a great deal of general credibility.
Perhaps ASIC/ASX should drop him a line. Just type Stephen Pollard into Google.
MXG Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
