The primary objective of British Nuclear Fuels plc (BNFL) is to supply a safe and efficient nuclear fuel cycle service. Springfields near Preston is the site of our fuel manufacturing operations, while Capenhurst near Chester is responsible for uranium enrichment. We reprocess irradiated nuclear fuel at Sellafield in West Cumbria, the site also of our multi-million pound investment programme which includes the Thermal Oxide Reprocessing Plant (THORP) and a range of facilities for the treatment and storage of waste produced during reprocessing operations. We also operate two nuclear power stations -Calder Hall on the Sellafield site and Chapelcross in Southern Scotland. Risley in Cheshire is the focus for our engineering design activities and the Company`s Central Services Unit. The Head Office is also based at Risley. Fuel cycle services associated with the production of nuclear-generated electricity accounts for around 90% of our work. The report includes the chairman`s review of the year, the Chief Executive`s Report and summaries of the activities of the UK Group, International Group, Engineering Group and the Central Services Unit. The accounts are presented. (author).