Real Digital International has received backing from LDC, the private equity arm of Lloyds Banking Group, to accelerate its expansion into secure packaging for home test kits.
The investment allows Peter Rivett to bow out of the business that he started in 2004 as a direct mail printer using a UV inkjet technology he had developed. The investment brings in new directors to strengthen the board. Aylesh Patel, investment director at LDC, and LDC’s Christian Bruning join the board as non executive directors. Martin Hiscox becomes non executive chairman, along with former Astron chief executive David Mitchell as a further non exec.
Hiscox holds a number of similar roles in private equity backed tech and logistics companies, including ByBox and James and James. Mitchell also has experience in growing tech companies, supply chain businesses and, crucially for Real Digital, in scaling medical packaging businesses, having been chairman of Perigord, a specialist in pharmaceutical packaging design and management, for more than six years.
This is a major area of focus for the Croydon company. It designed and installed an automated kitting system to produce personalised home testing kits for bowel cancer, comprising phials, digitally printed labels and personalised letters so that the patient can carry out the test and return samples with all elements tracked and identified throughout the journey.
The custom built machine was in place two years ago for this project and there are plans to install a second as part of a £3.4 million spend, straddling the current and last financial year. Real Digital holds several patents relating to the design of the technology and the boxes which are designed to fit through a standard letterbox. The company can adjust the tray inside the box to carry product samples as part of a direct mail campaign as well as for other healthcare applications.
It is a step on from the fulfilment of SIM cards and event ticketing services that the company has developed and will take RDIL into the fast growing territory of home screening for medical conditions.
Patel says: “RDIL has developed a unique proposition to service markets with huge growth potential. We are backing a strong and passionate management team of innovators and problem solvers that continue to surpass their clients’ expectations.”
Barry Stephens and Chris Tagg, as managing director and sales and marketing director respectively, will continue to lead the 80-strong business.
Stephens says: “This investment allows us to embark on an exciting new chapter for the business, continuing to expand and develop our market leading technological solutions across our broad client base.”
Along with the packing line, the company operates a brace of Screen TruepressJet inkjet presses, HP Indigo B2 machines, and mailing lines. As well as the intelligent packaging operation, Real Digital has a customer spread across transactional communications, point of sale and direct marketing. This is expected to generate revenue close to £18 million this year. Turnover in 2020 was affected by lockdown and came in at £14.5 million (£16.1 million) though pretax profit increased to £4.73 million (£4.08 million).
