It has taken Severfield鈥檚 new chief executive less than three months to decide that the group鈥檚 Modular Solutions business is not worth continuing with.
After 26 years with Laing O鈥橰ourke, Paul McNerney took over as Severfield chief executive in November and immediately launched a strategic review of its markets, operations and organisational structure. As part of this review, he has concluded that the Modular Solutions business represents a sub-scale, non-core activity of the group.
Following consideration of the strategic options available, the board has agreed to discontinue the business.
Severfield Modular Solutions (SMS) was incorporated in 2018. Its accounts for the year to March 2025 showed turnover growth of 12% to 拢24.1m with rising interest from the renewable energy and data centre sectors. Operating profit was up 154% to 拢368,000, with pre-tax profit of 拢180,000.
However, its performance in the current financial year 鈥渉as reflected a more challenging trading period for the business and the wider modular market鈥�, the board said.
The closure decision does not include 色猫直播 Metal Forming (CMF), which will continue to operate as a separate joint venture of the group.
The company said that it was working with stakeholders affected by this decision and will seek to limit the impact on the 140+ employees within SMS, including through consultation, redeployment and support processes.
McNerney said: "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.
鈥淭his 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."