A bumper sell-off of subsidiaries by AEA Technology is beginning to bear fruit, according to the company.

The science company, based at Harwell, has sold most of its nuclear businesses and is concentrating on rail and the environment.

Turnover for the six months to September was £129.3m and the company made a pre-tax profit of £0.9m.

However, operating losses reached £12.4m, because of loss-making businesses which are being sold.

The company said losses in accentus and nuclear programmes were unacceptable, and cost savings would be made.

Spokesman Mark Herbert said it was too early to say whether that would lead to more job losses.

AEA Technology, the privatised wing of Britain's atomic energy authority, said operating profit in its core businesses, rail and environment, had reached £8.5m.

Chairman Peter Watson said: "Our core rail and environment businesses enjoy strong market positions and produced a solid performance."

The firms Battery Systems business also won a contract worth up to £20m to supply pacemakers to Wilson Greatbatch Technologies.

"We are confident in the outlook for these businesses for the year.

"Battery Systems and QSA also made good progress.

"We have made major strides in rationalising the group, selling our non-core Hyprotech business and continuing to make significant cost savings.

"Capital was also returned to shareholders as promised during the period.

"We are also taking strong action where required to improve performance in our non-core activities.

"Our specific focus is on Accentus, where the performance was unacceptable, and on Nuclear Programmes, where the priority is to minimise the cost of exiting the nuclear industry." Earlier this year, it gave £70m back to its shareholders after shrinking its workforce by 15 per cent.

It sold its engineering software business Hyprotech for £67.5m and hundreds of other Harwell staff now also work for new employers.