React spins off services to safeguard revenues

Wireless distributor targets consultancy success after hiving off support and services division

Wireless firm React Technologies has spun off its services business into a separate company to safeguard against slowing distribution sales.

React Technologies will now offer support and services while the product distribution business will be taken care of by React Distribution.

Employees have been split between the two with Jess Thompson-Hughes remaining managing director of both.

He claimed he may recruit someone to helm one of the companies and indicated he was keen to relocate one arm to a separate office.

Thompson-Hughes said he wants to undertake consultancy work for companies tendering for IT projects.

“We want to build on services while maintaining focus on the channel,” he said. “Channel sales are slow and, currently, there is not enough to have 20-odd staff just doing distribution.”

Barrie Desmond, director of distributor VADition, said: “React is a great business and Jess has created a really good niche. But there is a question mark as to whether you can run with the hares and hounds.”