Backing Britain: Three UK manufacturers offer exposure to a growing, patriotic portfolio

Britain remains a manufacturing powerhouse, producing everything from niche engineering to high-tech and pharmaceutical products with high margins and skilled jobs. The country sold about £452 billion of British-made items last year, with notable growth in beer and aeroplane parts. Yet figures released last week pointed to softer conditions in the sector, underscoring why investors are turning to companies that manufacture at home and can benefit from domestic demand or non-discretionary needs.

Three UK-based businesses commonly cited by market observers as exemplars of profitable domestic manufacturing are Gooch & Housego, now branded G&H; Halma; and Nichols. Each operates in a different corner of the economy, but all rely on Made-in-Britain production to fuel growth and, in some cases, to support global markets.

Gooch & Housego, which now trades as G&H, began in Somerset in the late 1940s when two evacuated optical scientists started the business. It makes imaging systems for submarines and tanks, as well as components used in tattoo-removal equipment, portable ultrasound devices and subsea telecom cables. In the UK it operates in Ashford, Ilminster, Torquay, St Asaph and Plymouth, and it also has manufacturing bases in the United States after a recent acquisition. G&H is exposed to defence, communications and life sciences growth areas, and brokers say increased UK military spending—especially on drones and autonomous vehicles—should support the business. Robin Byde at Zeus notes that defence spending shifts are a tailwind for G&H, and that aerospace and defence now account for about 35% of revenue. The stock trades on AIM under the ticker GHH; the shares hovered around £5.74 after peaking near £15 in 2021. The dividend yield is about 2.4%. However, the company faced two profits warnings in 2024, and US tariff uncertainty remains a potential overhang. Pass-through pricing for high-technology products can help cushion cost pressures, but investors should weigh both the cyclicality of defence budgets and the risks from tariff changes.

Halma is a diversified safety- and hazard-detection group that effectively operates as a holding company for more than 50 technology businesses. It acquires focused firms that solve niche problems—such as Palintest in Gateshead and Apollo Fire Detectors in Havant—and then uses its financial muscle to help them scale. The group maintains a substantial US footprint, and many of its products fall into non-discretionary categories, which some analysts see as a buffer against economic slowdowns. As Russ Mould of AJ Bell notes, tightened safety and regulatory requirements can lift demand for Halma’s products, even when other cycles are weak. The shares trade on the Main Market under HLMA, and they have risen about 25% this year to around £33.56, though they were modestly lower on the current week. While the long track record is attractive, investors should monitor policy changes and tariff risks that could affect foreign subsidiaries and cross-border supply chains.

Nichols plc, the AIM-listed maker of Vimto in Ross-on-Wye, sits in a different corner of the UK manufacturing spectrum. The company also produces Levi Roots-branded sodas and post-mix syrups for pubs and caterers. Vimto traces its origins to 1908 as ‘Vimtonic’, and family ownership remains a defining feature: members of the Nichols family sit on the board and hold a large stake. About three-quarters of sales come from the UK, with the Middle East and Africa seen as long-term growth opportunities. Nichols carried roughly £50 million in net cash at the close of the 2024 financial year and tends to pay out roughly half of profits as a dividend. The stock trades on AIM under NICL; it has slipped around 7% this year, creating potential value for patient investors with a tolerance for consumer staples exposure and currency risk in export markets.

Taken together, the trio illustrates how investors can gain exposure to Made-in-Britain manufacturing via diverse end-markets—from defence and safety tech to staple beverages—while tapping into growth engines at home and abroad. In a period of sector-wide headwinds, these firms show how high-precision engineering, niche technology and strong balance sheets can support steady income and potential upside. For those looking to diversify, the UK-listed options on AIM provide access to these names alongside established platforms that offer low-cost trading and research.