Reactec grasps growth opportunity with new funding

Reactec, backed by Archangel Investors, the prominent Edinburgh-based business angel syndicate, and Scottish Enterprise, is the market leader in monitoring and management platforms for hand and arm vibration (HAV) - the cause of one of the most common and incurable industrial diseases in the UK, White Finger Syndrome or HAVs.

Reactec’s ground breaking technology, HAVWEAR, launched earlier this year, is the first wearable device of its kind in the UK. With the support of the Reactec analytics reporting software platform, HAVWEAR provides constant monitoring with automated reporting to indicate any exposure risk and enable employers to take preventative action.

The new wearable device provides the tool user with a module, fitted on a wrist strap, with a screen which highlights vibration exposure and tool information. The device, which is synchronised to a tag on each tool, emits an audible alert to indicate action should be taken due to the operator’s exposure to vibration.

HAVs, which is also known as Vibration White Finger, is one of the most common industrial diseases in the UK. The condition is usually caused by the prolonged use of power hand tools, whose vibrations can damage the blood vessels, nerves, muscles and joints of the hand, wrist and arm.

300,000 people in the UK suffer from the condition, for which there is no known cure, only prevention. Reactec’s technology is already in use by a number of leading companies in the construction sector, including Network Rail, Murphy Group and Balfour Beatty. The company is increasingly targeting other industry sectors with its HAVWEAR system, both in the UK and internationally.

The deal is the latest transaction from Clydesdale Bank’s Emerging Technology Unit, a team created to support high growth technology businesses which need to access finance.

Jacqui McLaughlin, CEO of Reactec, commented: “Following our successful launch and investment in HAVWEAR earlier this year, we decided the time was right to review our funding options.

“We’ve had a very good experience with Clydesdale Bank as a funding partner. Not only did their financial package meet our needs but, in looking at our business, the Bank took a very holistic approach.

“Previously, our focus has very much been on the construction sector but we believe our new wearable technology has real potential within other target sectors as evidenced by the very significant contracts which have already been agreed this year.

“We’ve undertaken research in Europe, particularly in countries where the regulations on vibration monitoring mirror the position in the UK, and we believe there is further potential for us in the export market in the longer term. This funding will assist Reactec in seeking to grow in these important markets.

Tom Brock, Head of the Emerging Technology Unit at Clydesdale Bank, said: “The unit was created with the express purpose of delivering support for entrepreneurial companies with innovative technology and strong intellectual property which has real potential to make its mark globally.

“Reactec’s already strong position in the UK marketplace has been further reinforced with the launch of HAVWEAR and its success in securing contracts with a number of blue-chip companies.

“We look forward to supporting Jacqui and her team as they move the business into its next phase of growth.”

Testimonial:

Stirling Council

“Daily monitoring has provided robust exposure data to support the defence of employee litigation of HAVS exposure on recent claims where claimant payments have been considerably reduced”.