Reaction Engines in Oxfordshire seeks funding to avoid collapse

Reaction Engines, a hypersonic flight company based in Oxfordshire, is facing a financial crisis and has engaged PricewaterhouseCoopers (PwC) to act as administrator if it fails to secure new funding. The company is in discussions with the UAE's Strategic Development Fund and other investors for a capital injection, needing tens of millions of pounds urgently. Despite having raised £150 million previously, the company is lossmaking and has seen a significant reduction in the value of its shares. Founded in 1989 and chaired by former defence minister Philip Dunne, Reaction Engines specializes in advanced propulsion systems, aiming to develop an engine capable of reaching Mach 25. The company has reported a 400% increase in commercial revenues last year and has a promising pipeline of contracts and R&D opportunities. However, it has also faced challenges, including a workforce reduction and a simplified leadership structure. The company’s cooling technology has garnered interest for military aircraft and zero-emission commercial flight technologies, indicating potential for future revenue streams. Despite the optimism surrounding its technology, market conditions have become more challenging, leading to concerns about its financial sustainability. As Reaction Engines seeks new funding, the urgency of its situation is underscored by the need for immediate capital to avoid insolvency. The outcome of these funding discussions will be critical in determining the company's future and its ability to continue its innovative work in hypersonic flight.