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."

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.