All jobs have been lost at a British shipbuilding company after it collapsed into administration. The business was founded in 2018 before being given funding by the government in a bid to revive the local industry.

It has been confirmed that Coastal Workboats Scotland Limited (CWS) has appointed administrators just three years after signing a 10-year lease with Stornoway Port Authority in the Outer Hebrides. During that time, it was given £6.2 million in government support and a grant worth £167,000 from Highlands and Islands Enterprise (HIE). The government hoped the business would revive the shipbuilding industry in the town of Stornoway but it soon encountered financial challenges.

As reported by The Scottish Sun, administrators from FRP Advisory blamed “design issues and supply chain delays” for its recent collapse. Five boats currently remain unfinished, including the UK’s first all-electric commercial workboat.

Coastal Workboats Scotland Limited employed five staff to build boats. It had also planned to employ a further 20 staff to help its ongoing projects but this will no longer happen.

Administrators FRP Advisory said: “The company operated a boat building business from a leased shipyard on Goat Island, Stornoway, Isle of Lewis. At the date of the appointment, it employed a total of five staff and had various shipbuilding contracts under way, including contracts agreed in early 2022 to build two Landing Utility Vessels with Damen Hardinxveld.”

They added: “In 2022, CWS applied for a funding grant with Innovate UK to build a UK-first Electronic Landing Utility Vessel (E-LUV) – a fully electric inter-island workboat supported by a shore-powered storage station.

“In November 2023, the company signed a 10-year lease with Stornoway Port Authority for its Goat Island premises. Additional contracts were then secured with Damen Gorinchem in July 2024 to build two tug vessels.”

The administrator continued: “By September 2024, the company was awarded a further grant from Highlands and Islands Enterprise of £167,000 to purchase innovative equipment to help the business grow. The grant was used to fund robotic welding equipment to build and support its E-LUV project.

“In February 2025, after the costs of the E-LUV project increased, additional unsecured funding of £1.6m was agreed with Damen Hardinxveld to support the company’s capital position. CWS had commenced a number of large shipbuilding contracts since 2022, with additional funding including grants and loans secured to support these contracts.”

FRP added: “The company suffered financial challenges through 2025, in part due to design issues and supply chain delays which impacted progress on vessel build timescales and placed considerable pressure on the company’s cashflow.”

An HIE spokesperson said: “We are aware of the current situation at Coastal Workboats and have been in close contact with the company regarding its future.

“We are also working with the administrators to help secure the best possible outcome for public funds. Discussions are ongoing, and we are unable to comment on specific details until outcomes are agreed.”

A Stornoway Port spokesperson said: “The port is aware that our tenant, Coastal Workboats Ltd, has entered administration and we are currently engaging constructively with the appointed administrators.

“A Coastal Workboats vessel is currently on our slipway, and the administrators are currently evaluating the most suitable next steps for the vessel.”