Britain is a manufacturing powerhouse, with everything from niche engineering to technology and pharma products made here by high-margin, highly-skilled businesses.
We sold an impressive £452billion of British-made items last year, with notable growth in sales of beer and aeroplane parts.
But figures last week revealed the sector is struggling. So it’s more essential than ever to look for that Made in Britain logo and support firms manufacturing on home turf.
Plus, many companies that manufacture in Britain could give your portfolio a financial – and patriotic – boost. Here are three businesses that fly the flag with pride.
G&H
Changing the oddly named Gooch & Housego to the snappier G&H hasn’t made prospective investors any wiser about what this company does.
Ever since it was set up in Somerset by two evacuated optical scientists (Leslie Housego and Archie Gooch) in the late 1940s, G&H has made lenses and crystals its business and, as its website points out, its expertise is in making very difficult things very well.
Nowadays, that means producing imaging systems for submarines and tanks as well as components for tattoo removal equipment, portable ultrasound systems and subsea telecoms cables.
In the UK, G&H operates in Ashford, Ilminster, Torquay, St Asaph and Plymouth, and also has manufacturing bases in the US following a recent Stateside acquisition.
Its expertise puts G&H squarely into many of the world’s current growth markets, including defence, communications and life sciences.
Brokers believe the company will benefit particularly strongly from increases in UK military spending in the coming years.
Robin Byde, at Zeus, says the military spending review’s focus on drones and autonomous vehicles is good news for G&H and points out that aerospace and defence is now 35 per cent of the company’s revenues.
Valuation-wise, G&H looks cheap against international peers. That’s partly because it had two profits warnings in 2024 and is still recovering. June’s half-year figures were in line with expectations, though, and analysts were comforted by strong order books and a sustainable margin growth.
There are some clouds fogging G&H’s viewfinders, such as US trade tariff uncertainty, but these are offset by robust spending on defence and the ability of companies like G&H with very high technical specifications to pass on their increased costs to their customers.
The company also pays a dividend, yielding around 2.4 per cent.
The shares hit nearly £15 in 2021, far higher than their current £5.74. They’re also traded on AIM, which means that if you hold them outside your pension, they may have a lighter inheritance tax burden when you pass them on. Buy.
Traded on: Aim
Ticker: GHH
Contact: gandh.com
HALMA
Halma is one of those FTSE 100 businesses that it’s notoriously hard to get a handle on, partly because it’s nearly 50 businesses at once.
The firm acquires companies with technology solutions that solve niche problems, from elevator safety to cervical cancer screening sample collection.
Each company has its own board and is managed separately, but the idea is that Halma’s financial firepower and business specialists can help them to grow.
Many Halma companies make products in Britain, from water analysis firm Palintest in Gateshead, in Tyne and Wear, to Apollo Fire Detectors in Havant, Hampshire. It also has a large US presence.
As Russ Mould, from DIY investment group AJ Bell, points out, when regulations are tightened for factories or residences, it’s good news for Halma’s hazard detection businesses.
Companies must invest in things such as safety equipment, whatever the state of the economy, so the non-discretionary nature of many of Halma’s products works in its favour.
Investing in Halma is not risk free, though. It’s not easy to see the impact of US tariffs yet, and the company’s excellent track record comes at a price for investors – the shares are now at £33.56, up nearly 25 per cent this year.
For those who are long-term investors this may be worth a buy on share price weakness, such as this week when the shares fell 0.7 per cent.
Traded on: Main market
Ticker: HLMA
Contact: halma.com
NICHOLS
AIM-listed Nichols makes the iconic fruit-flavoured drink Vimto in Ross-on-Wye and claims it’s the eighth ‘most chosen’ beverage in the UK.
The company now also produces a range of Levi Roots branded carbonated soft drinks as well as post-mix syrups for pubs and caterers.
Vimto began in 1908 as ‘Vimtonic’, an energy drink, and the company boasts that only a handful of people know the secret blend of fruit and herbs.
Among them are likely to be the members of the Nichols family who are still on the board and hold over a third of the company’s shares.
Family ownership gives the company ballast, and it is conservatively managed, but Vimto also has growth prospects in the pipeline.
Nicholas Hyett, from AIM’s Wealth Club, says that although the UK accounts for around 75 per cent of sales, the Middle East and Africa are long term growth opportunities.
Vimto had about £50million in net cash at the end of the 2024 financial year and looks to pay out around half of profits as a dividend.
The shares are down around 7 per cent this year and might be worth a look at this level.
Traded on Aim
Ticker: NICL
Contact: nicholsplc.co.uk
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