IN Brief:
- Severfield has reported a £40m pre-tax loss after booking £50m of exceptional charges.
- The charges include modular construction exit costs, impairment, and increased remedial costs linked to bridge defects.
- The steelwork contractor said UK and European structural steel markets remain subdued.
Severfield has reported a £40m pre-tax loss after taking £50m of exceptional charges linked to business simplification, modular construction exit costs, and legacy issues.
Britain’s largest steelwork contractor booked £22m of impairment charges and £13m linked to the closure of its Modular Solutions arm during the year to 28 March 2026. Remedial costs connected to long-running bridge defects also increased by a net £8.2m, despite further insurance recoveries.
Underlying pre-tax profit fell 42% to £10.5m, while operating margins dropped to 2.8% from 4.8%. Severfield said the UK and European structural steel market remained subdued, with competitive pricing, delayed project starts, and fewer larger projects weighing on returns. Net debt reduced by £15m to £28m, giving the company a firmer base as it narrows its focus to higher-margin sectors.
