A company listed on the FTSE 250 is relocating its manufacturing operations to the United States in response to the tariffs imposed during the Trump administration.

Discoverie Group, which specializes in the design and manufacturing of industrial electronics, announced the shift as a strategy to safeguard against potential tariffs on components exported from the UK to the US. This move also positions the company to capitalize on market opportunities presented by their competitors who are facing import charges.

The key concern for Discoverie is its involvement in the US market, where it produces electronic components for airport security and various scanner technologies.

The company revealed that 18% of its components in this market are shipped from the UK to the US; however, production could seamlessly transition to its American facilities.

Nick Jefferies, CEO of Discoverie, stated that this transition represents a dual advantage for the company. By moving production stateside, Discoverie can clear up capacity in its UK facilities for other sensor markets, including food processing and waste management.

“We recognize that some competitors import from Asia, which makes us an attractive choice for American customers,” he added.

The organization, formerly known as Acal, is valued at £500 million and encompasses a range of companies involved in industrial electronics, including security solutions and data center monitoring equipment. Its primary operations are based in the UK, the US, and Germany.

The announcement comes as Discoverie reports a record profitability for the financial year ending in March.

Although group revenues are anticipated to decrease by 2% compared to the previous year due to a reduction in inventory by medical clients, sales rose by 19% in the last quarter compared to the preceding quarter, with fourth-quarter orders up by 11%.

Peel Hunt, the brokerage firm, projects that Discoverie will achieve underlying pre-tax profits nearing £50 million with revenues hitting £423 million. The prior year, the company reported pre-tax profits of £48 million on sales of £437 million.

The brokerage believes Discoverie’s proactive withdrawal from Asia during the initial Trump administration’s trade conflicts with China has been beneficial.

Andrew Humphrey, a senior analyst, remarked, “Discoverie management is adeptly navigating profitability within a tough revenue environment.”

Following the news, Discoverie’s shares increased by 19p, or 3.5%, to close at 560p, after trading above 700p earlier in the year.