Latest news with #DiscoverIE
Daily Mail
6 days ago
- Business
- Daily Mail
Shares in UK electronics maker soar as exporter plays down tariff impact
DiscoverIE Group shares topped the FTSE 250 on Wednesday morning after the electronics maker said it expected a 'limited direct impact' from US tariffs. The group, which designs and manufactures customised electronic components for industrial applications, had previously outlined plans to s hift more manufacturing to the US in the wake of President Donald Trump's tariffs. DiscoverIE told investors on Wednesday its capacity to transfer manufacturing meant it could 'substantially mitigate the effects of US tariffs on imports.' Shares in the Surrey-based firm, which makes customised components for industrial applications, shot up by almost 13 per cent to 715p by midday. During President Donald Trump's first term, DiscoverIE relocated some production to India and Mexico after the US government imposed levies on some imported Chinese goods. Two months ago, it announced plans to increase US-based production 'in the coming months' following the imposition of tariffs by the new Trump administration. A 10 per cent baseline tariff exists on most US goods imports, while goods from China are subject to a 30 per cent duty. Trump has also just doubled the tariff on foreign steel and aluminium products to 50 per cent, although the UK is exempt from this levy. Nick Jefferies, chief executive of DiscoverIE, said: 'Whilst we will pass on any incremental tariff costs, we continue to do all we can to mitigate them with our local manufacturing and expect limited direct impact, although remain mindful of the volatile economic conditions and its potential to impact customers' demand. It came as the Guildford-based business reported record annual adjusted operating profits and earnings, which totalled £60.5million and 38.7 pence per share, respectively, in the year ending March. This was despite the firm's revenue declining by 3 per cent to £427.9million due to industry destocking and supply chain normalisation. Organic sales slumped by 10 per cent in the first half of the financial year but fell by 4 per cent over the following six months amidst strong demand from the industrial and security sectors. DiscoverIE's organic sales remained the most resilient in Asia, where they tipped up by 1 per cent, compared to a 7 per cent drop in both the UK and Germany. Meanwhile, DiscoverIE's orders expanded by 8 per cent at constant exchange rates to £411.9million, and its full-year dividend rose by 4 per cent to 12.5p per share. Jefferies said: 'DiscoverIE is aligned with target markets which are underpinned by structural growth drivers and, with the addition of the security market during the year, our total market opportunity increased to over $30billion. 'With a strong pipeline of organic and inorganic opportunities, the group is well placed to continue its resilient performance and development.'
Reuters
6 days ago
- Business
- Reuters
UK shares rise as US exempts Britain from additional metal tariffs
June 4 (Reuters) - London shares edged higher on Wednesday after Britain secured an exemption from the United States' doubled tariffs on steel and aluminum imports, easing ongoing trade tensions that have unsettled markets throughout much of the year. As of 0932 GMT, the blue-chip FTSE 100 (.FTSE), opens new tab was up 0.3%, and the midcap FTSE 250 (.FTMC), opens new tab rose 0.5%. The U.S. announcement, which exempts British steel and aluminum from a doubling of tariffs to 50%, came in a proclamation signed by U.S. President Donald Trump on Tuesday that raises metals tariffs for other countries from June 4. "UK markets have made another step in the right direction this investors look eager to shrug off U.S. trade drama," said Matt Britzman, senior equity analyst, Hargreaves Lansdown. Miners of both industrial (.FTNMX551020), opens new tab and precious (.FTNMX551030), opens new tab metals gained over 1% as gold and copper prices stabilised on the day. DiscoverIE (DSCV.L), opens new tab topped the midcap index with 11.2% gains after the designer and manufacturer of customised electronics posted a 4% rise in 2025 preliminary adjusted pretax profit. On the flip side, discount retailer B&M (BMEB.L), opens new tab fell 6.2% to the bottom of the midcap index after reporting annual sales below expectations, as waning consumer demand and persistent inflation hampered its UK operations. Meanwhile, the S&P Global PMI data showed that Britain's services sector returned to tepid growth in May after fears about Trump's tariffs caused it to shrink in April. Investors kept their focus on the pace of trade negotiations and the lack of significant progress, as Wednesday is the deadline for U.S. trading partners to submit their proposals to avoid Trump's "Liberation Day" tariffs taking effect in early July. Nonetheless, British equities have rebounded from their April lows after the country clinched a limited trade agreement with the U.S. earlier in May. The blue-chip FTSE 100 is now sitting about 1% away from its all-time highs. "The premier index is seemingly gathering an array of international investor admirers, given the stability and maturity of its constituents," said Richard Hunter, Head of Markets at interactive investor.
Mint
6 days ago
- Business
- Mint
UK shares rise as US exempts Britain from additional metal tariffs
FTSE 100 up 0.3%, FTSE 250 rises 0.5% UK services sector returns to growth, PMI survey shows UK exempt from US doubled tariffs on steel and aluminum imports B&M drops after annual sales disappoint June 4 - London shares edged higher on Wednesday after Britain secured an exemption from the United States' doubled tariffs on steel and aluminum imports, easing ongoing trade tensions that have unsettled markets throughout much of the year. As of 0932 GMT, the blue-chip FTSE 100 was up 0.3%, and the midcap FTSE 250 rose 0.5%. The U.S. announcement, which exempts British steel and aluminum from a doubling of tariffs to 50%, came in a proclamation signed by U.S. President Donald Trump on Tuesday that raises metals tariffs for other countries from June 4. "UK markets have made another step in the right direction this investors look eager to shrug off U.S. trade drama," said Matt Britzman, senior equity analyst, Hargreaves Lansdown. Miners of both industrial and precious metals gained over 1% as gold and copper prices stabilised on the day. DiscoverIE topped the midcap index with 11.2% gains after the designer and manufacturer of customised electronics posted a 4% rise in 2025 preliminary adjusted pretax profit. On the flip side, discount retailer B&M fell 6.2% to the bottom of the midcap index after reporting annual sales below expectations, as waning consumer demand and persistent inflation hampered its UK operations. Meanwhile, the S&P Global PMI data showed that Britain's services sector returned to tepid growth in May after fears about Trump's tariffs caused it to shrink in April. Investors kept their focus on the pace of trade negotiations and the lack of significant progress, as Wednesday is the deadline for U.S. trading partners to submit their proposals to avoid Trump's "Liberation Day" tariffs taking effect in early July. Nonetheless, British equities have rebounded from their April lows after the country clinched a limited trade agreement with the U.S. earlier in May. The blue-chip FTSE 100 is now sitting about 1% away from its all-time highs. "The premier index is seemingly gathering an array of international investor admirers, given the stability and maturity of its constituents," said Richard Hunter, Head of Markets at interactive investor. This article was generated from an automated news agency feed without modifications to text.
Yahoo
11-05-2025
- Business
- Yahoo
Looking to invest in the stock market? Here are 3 top picks from the pros to consider
With thousands of companies to pick from, finding winning investments in the stock market can be quite an arduous task. That's why many investors like to 'cheat' and seek advice from professionals and analysts. Among these, the investment bank Peel Hunt has quite a reputation for success. As 2024 was about to kick off, its team of analysts revealed its top picks for the coming year. And while 12 months isn't long enough to properly judge performance, the recommendations were successful at beating the FTSE All-Share. Skip ahead, and the same team of analysts have released their latest picks for 2025. So let's take a look at some of their highest conviction ideas. Peel Hunt's 2025 list of recommendations included Domino's Pizza Group (LSE:DOM), DiscoverIE Group, and Marks & Spencer. So should investors consider these enterprises right now? Even with all the knowledge and insights professionals have at their fingertips, mistakes still happen. The stock market can be quite unpredictable in the short term. So it's paramount that investors discover exactly what they're getting into. With that in mind, let's take a closer look at the first business on this list, Domino's Pizza. Peel Hunt's excitement surrounding the pizza franchise chain is linked to management's expansion plans. Hunt analysts believe the company will successfully expand its store count to 2,000, boosting earnings to £200m in the process. For reference, those figures currently stand at 1,375 and £138.1m respectively. If these projections prove accurate, the firm has placed a share price target of 425p. Compared to where the shares are trading today, that represents a 57% potential gain. However, while that's obviously exciting, it's important to recognise the risks attached to this opportunity. Not all analysts agree with Peel Hunt's conclusion. In fact, one firm has projected the stock could fall to 250p moving forward. That's because a few things have to go right for management to hit its goals. Expanding the store count to 2,000 will be heavily dependent on franchisee buy-ins, which isn't guaranteed, especially in a higher interest rate environment. What's more, Domino's isn't the only pizza company attempting to capitalise on the UK and Irish fast food markets with stiff competition coming from Pizza Hut and Papa John's. If food quality starts to suffer or the firm doesn't adapt its menu to changing consumer tastes, Domnio's future growth could fall short of analyst projections. Given the firm's track record and the improving relationship with franchisees, Domino's Pizza seems worthy of a deeper dive from investors looking for growth opportunities in 2025. The same might be true for the other businesses on this list. Marks & Spencer recently ran into some — ongoing — trouble following a cybersecurity breach. But this might just be a speed bump that's created a buying opportunity. Similarly, DiscoverIE also seems to show promising growth avenues to explore. But like with all investments, nothing is ever risk-free. And investors need to do their due diligence to uncover what could go wrong as well as what could go right. The post Looking to invest in the stock market? Here are 3 top picks from the pros to consider appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has positions in Alpha Group International. The Motley Fool UK has recommended Alpha Group International and Domino's Pizza Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Reuters
16-04-2025
- Business
- Reuters
UK's discoverIE to move more production to US amid tariff woes
April 16 (Reuters) - Britain's discoverIE (DSCV.L), opens new tab said on Wednesday it will shift more production to the U.S. and pass on higher costs for its customised electronics amid concerns over Donald Trump's tariffs. China and the United States, the world's two biggest economies, are locked in a scathing trade war that has rattled financial markets with their eye-watering tariffs. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. DiscoverIE said it expects to offset tariff impact by passing on costs to clients, adding its U.S. unit, accounting for about a quarter of sales, imports "very little" from China. Shares of the company rose 3% to 557 pence by 0741 GMT after the company said it expects earnings for the year 2024/25 to be slightly ahead of expectations.
