REG - Severfield PLC - Strategic Review of the Modular Solutions Business

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RNS Number : 9693Q  Severfield PLC  29 January 2026

29 January 2026

 

Severfield plc

('Severfield', 'the Company' or 'the Group')

Strategic Review of the Modular Solutions Business

Severfield plc, the market-leading structural steel group, announces the
discontinuation of its Modular Solutions business.

Following 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.

In 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.

The 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.

 

The 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.

The 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.

 

Paul McNerney, Chief Executive Officer commented:

"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 careful consideration and is
intended to support the long-term strength and sustainability of the Group.

 

This marks an important early step in reshaping our strategy, and we will
provide a broader update on the growth strategy for our core businesses during
2026."

 

ENDS

 

 

For further information, please contact:

 

 

 Severfield               Paul McNerney                     01845 577 896

                          Chief Executive Officer
                          Jan Bramall                       01845 577 896

                          Interim Chief Financial Officer
 Camarco                  severfield@camarco.co.uk
                          Ginny Pulbrook                    07961 315 138
                          Tom Huddart                       07967 521 573
 Jefferies International  Sam Barnett                       020 7029 8000
 Panmure Liberum          Nick How                          020 3100 2000

 

Notes:

Except as otherwise stated '2026 and FY26' and '2027 and FY27' refer to the
52-week periods ending 28 March 2026 and 27 March 2027. The Group's accounts
are made up to an appropriate weekend date around 31 March each year.

 

Notes to editors:

Severfield is the UK's market leader in the design, fabrication and
construction of structural steel, with a total capacity of c.150,000 tonnes of
steel per annum. The Group has seven sites, c.1,800 employees and expertise in
large, complex projects across a broad range of sectors. The Group also has an
established presence in the expanding Indian market through its joint venture
partnership with JSW Steel (India's largest steel producer).

 

The Group delivers steel superstructures through its Core Construction
Operations, separated operationally into a Commercial and Industrial division
(bringing together the Group's strong capabilities in the industrial and
distribution, commercial offices, stadia and leisure, data centres, retail,
and health and education market sectors), which includes the Group's European
operations, and a Nuclear and Infrastructure division (encompassing the
Group's market-leading positions in the nuclear, power and energy, transport
(road and rail) and process industries sectors). The Group's Modular Solutions
division consists of the growing product ranges of Severfield Modular
Solutions ('SMS') and of Construction Metal Forming ('CMF'), the Group's
specialist cold rolled steel joint venture business.

 

Inside information

This announcement contains inside information as stipulated under the Market
Abuse Regulation (EU) No.596/2014 (as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018) and is disclosed in
accordance with the Company's obligations under Article 17 of those
Regulations. On the publication of this announcement via a Regulatory
Information Service, such information is now considered to be in the public
domain. The person responsible for arranging for the release of this
announcement on behalf of Severfield is Jan Bramall, Interim Chief Financial
Officer.

 

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