Severfield axes ‘non-core’ modular arm after strategic review
Written by admin on January 30, 2026
Steel giant Severfield has discontinued its Modular Solutions business after concluding the division was “non-core” to the group’s future strategy.
The decision followed a strategic review of markets and operations led by new chief executive Paul McNerney, who joined the firm in November.
In a statement to the London Stock Exchange today (29 January), the company said: “The board has concluded that the Modular Solutions business represents a sub-scale, non-core activity of the group.”
In the year to 29 March 2025, the Modular Solutions division generated £24.2m in revenue – 5 per cent of the group’s £450.9m turnover – and reported £400,000 in underlying pre-tax profit.
It specialised in designing and manufacturing modular steel components and frames for the construction industry.
But its performance worsened in the current financial year amid tougher trading conditions across the modular sector, Severfield said.
Modular firm failures since last April include Jans Offsite Solutions, Elements (Europe), Kingston Modular Systems and, most notably, Merit in November 2025.
The closure of Severfield Modular Solutions does not include Construction Metal Forming, a cold-rolled steel joint venture with South Wales-based CMF, which will continue to operate independently.
The group’s core business remains focused on structural steelwork, where it reported an order book of £479m as of 1 January 2026.
Severfield said the shutdown would not affect forecasts for underlying profit or net debt this year and the modular unit would be reported as a discontinued operation.
The firm said it was “working constructively with all stakeholders” and would seek to limit the impact on staff through “appropriate consultation, redeployment and support processes”.
McNerney said: “The decision announced today follows careful consideration and is intended to support the long-term strength and sustainability of the group.”
He added that the move marked “an important early step in reshaping our strategy” and confirmed a broader update would be provided later in 2026.
Severfield was ranked as the top steel contractor in the latest CN Specialists Index.
But its interim results, released last month, showed a £7.6m pre-tax loss and an 18 per cent fall in turnover for the six months to 27 September 2025 compared with the same period in 2024.
