UK nuclear group BNFL has announced the group’s full year results to the end of March 2005.
Cash outflow rose to £438 million ($797 million) compared with £134 million ($243 million) in the previous year, mainly due to an increase in expenditure on nuclear liabilities and investments in the business groups. The company reorganised into three main business groups of Westinghouse, British Nuclear Group (including Spent Fuel Services) and Nexia Solutions. The group contends that while the new business groups are all performing well, overall results continue to be over-shadowed by historic issues and cash flows dominated by liabilities. The Magnox Generation also continues to have three figure losses.
With regards to Westinghouse, BNFL chairman Gordon Campbell said: “Our strategy review concluded that BNFL’s businesses would be managed to deliver value and control risks to the UK tax payer. In line with this strategy, we are starting a structured sales process for the Westinghouse business.”
The sales process is designed to determine whether a disposal would realise appropriate value.
Losses before tax, interest and exceptional items was £144 million ($262 million), compared to the £283 million ($433 million) of the previous year. Exceptional charges came to £243 million ($442 million) associated with the restructuring of BNFL and a provision of £132 million ($240 million) to draw a line under the US legacy contracts.