Rolls-Royce: Losses widen at FTSE 100 giant’s SMR division
The small nuclear reactor business owned by FTSE 100 giant Rolls-Royce lost £115m in 2024, it has been revealed.
Rolls-Royce SMR, which is not yet revenue generating, has posted the higher losses after also making a deficit of £78m in 2023.
New accounts filed with Companies House have also shown that the division’s income from government grants increased in 2024 from £65.4m to £86.9m.
The division’s headcount rose from 590 to 714 in the year.
Speaking in July, group CEO Tufan Erginbilgic said he expected the SMR arm to be profitable and free cash flow positive by 2030.
Rolls-Royce SMR partners with CEZ
Rolls-Royce SMR is co-owned by the FTSE 100 giant and Czech power company CEZ.
In June, the division was selected to be the UK’s provider of small modular reactor (SMR) technology.
It was successful in the Great British Nuclear (GBN) competition following a two-year process.
The division will now build three units in the UK in a move which the firm said would “generate employment, boost the supply chain and generate economic growth, including through the capture of significant export opportunities”.
CEZ bought a minority stake in Rolls-Royce SMR in October 2024.
The Derby-headquartered giant has handed a 20 per cent share in Rolls-Royce SMR in a deal worth hundreds of millions of pounds.
CEZ plans to build the first small modular reactor at the existing Temelin nuclear plant in the first half of the 2030s.
The deal is expected to result in up to three gigawatt-producing (GW) energy sources installed in the Czech Republic.
CEZ will also participate in other projects by Rolls-Royce SMR in Europe and around the world.
CityAM recently reported that Rolls-Royce plc is now worth more than £100bn after its share price continued its remarkable rise.
Rolls-Royce is now the fifth most valuable company on the London Stock Exchange.