Wembley may not be ready for FA Cup - Multiplex

Australian contractor Multiplex Group Ltd. said on Wednesday there was a "material risk" the troubled Wembley stadium project in London would not be completed in time to host the FA Cup Final on May 13.

Shares in Multiplex fell as much 2.5 percent in early trading and have lost around 10 percent of their value since the company issued a profit warning on Monday over cost blowouts with the redevelopment of the iconic soccer stadium.

A revised works schedule allowed for the progressive handover of the stadium from next month, with the redevelopment to be substantially completed by the end of March, Multiplex said.

"There remains a material risk that these dates will not be achieved and the stadium will not be available for the FA Cup final," the company said in a statement. "As previously stated, such delay, if it was to occur, would be likely to lead to significant additional costs, including liquidated damages."

Multiplex, which issued three profit warnings between February and August, said on Monday its 2006 profit was likely to be A$165 million ($120 million) below what it had forecast.

The company on Wednesday updated that with a range.

In the worst case, its forecast 2006 profit of A$215 million before inter-group transfers and distributions on hybrid securities was likely to be slashed by A$205 million or 95 percent.

In the best case its profit was likely to be reduced by A$60 million -- or 28 percent -- and the likely outcome of the range was for its 2006 profit to fall by 48 percent or A$104 million.

Multiplex already faces potential legal action after two law firms said in September that current and former shareholders had asked them to investigate whether Multiplex had misled investors over previous profit warnings linked to soaring costs at Wembley.