Reactec sees record growth in sales and international interest

Reactec sees record growth in sales and international interest

Reactec CEO Jacqui McLaughlin (image credit: Jamie Simpson)

Edinburgh-based risk prevention specialist Reactec has announced its busiest year on record – with a 40.9% increase in annual turnover to £5.58 million.

The company’s accounts for the year ended 31 December 2023 showed a gross profit of nearly £3.8m and an operating loss of £114,993, which it said was “within budget and included a £0.05m one-off costs relating to a potential restructuring”. The firm’s profit after tax was £0.07m, and included the receipt an R&D tax credit.

In July 2022, Reactec launched its third-generation wearable device, the R-Link smart watch, a multi-purpose workplace wearable that informs workers of their risk environment. With an initial ability to simultaneously monitor real-time exposure to Hand Arm Vibration and provide proximity warnings when the wearer enters the exclusion zone of a hazard, it is regularly refreshed with remote firmware updates to provide additional features to the end users.

The R-Link watch, with its supporting fully integrated digital eco-system, and the powerful Reactec Analytics software, to transform the data, enables Reactec to deliver an unprecedented view of an employee’s risk environment to allow employers to refine controls and prevent future risk.

The turnover boost also reflected the growing impact of its “Safety as a Service” plan which allows clients to spread the cost of products over three years, accounting for 50% of all orders placed in 2023. Overall, Reactec’s order book grew by 50% in 2023.

Although operating costs rose by 22% to £3.92 million (2022: £3.21 million), the company posted a profit for the financial year of £66,000 compared to a loss of £360,000 in 2022.

Jacqui McLaughlin, chief executive of Reactec, said: “There’s no doubt that, as we make the detection of harmful vibrations and other work-related exposure more accessible, we are seeing a measurable increase in sales of our R-link watch and our analytics programme.

“Hand arm vibration syndrome – or vibration white finger – is a particularly cruel and debilitating condition and the detection, and early warning of harmful exposure to the vibration that can cause it, remain vital to protecting the country’s workforce.

“We have had a strong first half in 2024 and are continuing to see good sales growth. We are also encountering rising international interest, particularly from the US, which now accounts for 23% of the traffic on our website.

“The growth in US business prompted us to launch a US data centre earlier this month to handle the analytics for our expanding customer base there.”

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