Abstract: An axial flux, permanent magnet electrical machine is disclosed. The machine has at least one stator disc and at least one rotor disc co-axial with the stator disc and mounted for rotation relative to the stator disc. The rotor has a plurality of permanent magnets mounted circumferentially thereon, and the stator comprises a plurality of discrete windings. The windings are recessed in the stator. The stator disc can be formed from a plastics material, and the rotor can have a segmented construction. The windings can also be arranged in groups to provide for a multi-phase machine.