No, they were working on the latter (skylon) most of the time, though the new management that came in after their £60M investment quickly dropped SSTO in favour

No, they were working on the latter (skylon) most of the time, though the new management that came in after their £60M investment quickly dropped SSTO in favour of more immediate RoI applications. The passenger plane was LAPCAT which was a paper study commissioned by the EU. They did some interesting real work too, such as designing and testing a hypersonic engine combustion chamber that could reduce NOx emissions, which would be a big problem in any ‘conventional’ (eg scramjet) hypersonic engine.