An experimental setup for nuclear reaction studies induced by light and heavy ions is described. It consists of a versatile Large Scattering Chamber equipped with two rotating tables for mounting detectors. A dedicated beam diagnostic system is used to monitor the energy spectrum of the beam on target. The system provides the necessary feedback for tuning of the K-130 cyclotron to reduce the energy spread of the accelerated beam by at least a factor of 3 down to about 0.3% of the nominal energy while maintaining beam currents around 20 pnA. At lower beam currents a 0.1% energy spread can be achieved. This improvement makes a significant impact on the scope of reaction studies possible to investigate at the Accelerator Laboratory of the University of Jyväskylä. Similar solutions could be adapted by other cyclotron facilities.