An electrical machine has a variable reluctance rotor, and a stator formed as an annular array of stator segments. The reluctance of the rotor-to-stator magnetic flux path varies with rotor position whereby the stator segments are magnetically energizable to rotate the rotor. The stator segments are arranged in the array such that, when energized to rotate the rotor, they produce an unbalanced force on the rotor. The machine further has a compensator including one or more balancing segments which are configured to be magnetically energizable to produce a balancing force on the rotor which balances the unbalanced force. The reluctance of the rotor-to-compensator magnetic flux path is substantially invariant with rotor position.