STATE-OWNED British Nuclear Fuels yesterday reported record losses of £2.3bn but said its operating performance had improved.

Chairman Hugh Collum said it had been a "landmark year" for the company, which had achieved an underlying profit before tax and exceptional items of £22m.

But Friends of the Earth called for an investigation into the Government's management of the company.

The group's nuclear campaigner, Roger Higman, said the scale of the losses was "staggering", adding: "They undermine the fact that nuclear power is completely uneconomic."

BNFL said in its final results for the year ended March 31 that its underlying performance had "significantly improved" in all businesses, while safety and environmental performance targets had been met.

Mr Collum praised the £22m pre-tax profit, which compared with a £210m loss in the previous year.

BNFL's chief executive, Norman Askew, said this was a time of major opportunity for the company, which runs the giant Sellafield plant in Cumbria.

The record losses were due to the company's liabilities for decommissioning its nuclear sites as well as the early closure of two Magnox power stations - Calder Hall in Cumbria and Chapelcross in Scotland.