A shipping company has plunged into administration and owes £15million to 78 creditors. The company that brought shipbuilding back to a Scottish island for the first time in a century folded with the loss of all jobs earlier this week. Coastal Workboats Scotland Limited owed a further £3million on top of £12million listed in accounts.

The company collapsed with five vessels still unfinished, including the UK’s first all-electric commercial workboat of its kind, Herald Scotland reported. It had five staff and aimed to employ a further 20 to build a range of workboats for customers including Damen, the Dutch shipbuilder.

Documents lodged at Companies House confirmed Coastal Workboats Scotland Limited had “commenced a number of large shipbuilding contracts since 2022 with additional funding including grants and loans secured to support these contracts.”

The report continued: “Although an additional loan was secured in February 2025, the business was unable to settle its pre-existing loan repayments with Solo Asset 1 under the agreed terms and was in default of its loan.

“As the loan had been guaranteed by Damen Hardinxveld, Solo Asset 1 notified Damen Hardinxveld they would be taking steps to enforce the guarantee. The company was also experiencing creditor pressure and was unable to settle supplier liabilities as they fell due.”

Trade creditors were owed £860,000. Creditors include Global Maritime Enginering Services Limited, HMRC, Highlands and Islands Enterprise, Hebridean Plant Limited, Stornoway Port Authority, and SSE Energy Solutions.

The report by FRP Advisory showed Coastal Workboats Scotland Limited was incorporated in 2018 by Brian Pogson and Julie Pogson as the directors.

The directors also own Coastal Workboats Limited and Coastal Pure Limited, which were not subject to an insolvency process and continue under the control of Mr and Mrs Pogson.