Severfield posts £40m annual loss

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Severfield posts £40m annual loss

Severfield has reported a heavy annual loss after exceptional charges. The steelwork contractor is closing modular operations and resetting its project strategy.

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.

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