Business
Strategic Review of the Modular Solutions Business
Severfield plc is discontinuing its Modular Solutions business, which contributed £24.2m in revenue and £0.4m in underlying profit before tax for the year ended 29 March 2025, as it is considered sub-scale and non-core. This decision, which does not affect the Construction Metal Forming joint venture, is not expected to materially impact the continuing Group's FY26 profit before tax or net debt, and the cash impact of the discontinuation is also anticipated to be immaterial. The Group's core structural steelwork activities remain a focus, supported by a diversified order book of £479m as of 1 January 2026. Disclaimer*
About this update from Severfield Plc
[{"type":"text","content":"\n\n29 January 2026\n \nSeverfield plc\n('Severfield', 'the Company' or 'the Group')\nStrategic Review of the Modular Solutions Business\nSeverfield plc, the market-leading structural steel group, announces the discontinuation of its Modular Solutions business.\nFollowing the appointment of new leadership, the Group has been undertaking a strategic review of its markets, operations and organisational structure. As part of this review, the Board has concluded that the Modular Solutions business represents a sub-scale, non-core activity of the Group, and following consideration of the strategic options available, has taken the decision to discontinue the business.\nIn the year ended 29 March 2025, Modular Solutions contributed £24.2m of revenue and £0.4m of underlying profit before tax, while its performance in the financial year to date has reflected a more challenging trading period for the business and the wider modular market. This decision does not include Construction Metal Forming ('CMF'), which will continue to operate as a separate joint venture of the Group.\nThe Group is working constructively with all stakeholders affected by this decision and will seek to limit the impact on employees within that business, including through appropriate consultation, redeployment, and support processes.\n \nThe Group continues to focus on its operational excellence within its core structural steelwork activities, where it remains well positioned to win work in markets and sectors with attractive long-term growth opportunities and where it benefits from a diversified order book which as at 1 January 2026 stands at £479m. \nThe Board confirms that the decision to discontinue Modular Solutions does not change its expectations for the continuing Group's underlying profit before tax or net debt for FY26. The results of Modular Solutions will be presented as a discontinued operation, and the Group does not expect the cash impact of discontinuing the operation to be material in the period.\n \nPaul McNerney, Chief Executive Officer commented:\n\"When I joined Severfield, I was clear that my priorities were to redefine our strategy, strengthen our manufacturing and delivery capabilities, drive greater efficiency, and reinforce our focus on engineering excellence for our customers. The decision announced today follows carefu...