At Port Glasgow, the mood around Ferguson Marine is beginning, cautiously, to shift. After years dominated by delay, scrutiny and political debate, activity at the yard is starting to take on a more recognisable industrial rhythm.
Fabrication work linked to the wider UK shipbuilding supply chain has begun flowing through the yard, drawing Ferguson into programmes far larger than its own order book. At the same time the Scottish Government is preparing a programme of new vessels which, if cleared through subsidy control scrutiny, could provide the continuity of work that shipyards depend on but Ferguson has lacked for much of the past decade.
The recovery is not complete as the company remains financially dependent on public support and the latest delay to Glen Rosa shows that the programme still carries risk. The difference today lies in the shape of the work emerging around the yard rather than in any single announcement.
Progress at Ferguson Marine began with the completion of a vessel whose construction had stretched across much of the last decade. MV Glen Sannox was formally handed over in November 2024 after meeting certification requirements from Lloyd’s Register and the Maritime and Coastguard Agency, with ownership passing to Caledonian Maritime Assets Ltd.
That delivery ended a long period in which the yard had been associated almost entirely with revised schedules and recovery plans. For the workforce in Port Glasgow the moment mattered because it marked the first time in years that a ship had left the yard under its own programme rather than as part of a crisis response.
The ferry entered service from Troon in January 2025. Early sailings required the sort of follow-on technical adjustments that are normal for a newly delivered vessel, although attention remained intense given the history of the build.
Leadership also stabilised during this period. Graeme Thomson became chief executive on 1 May 2025 after previously leading the Type 31 frigate programme at Babcock. In conversations with the UK Defence Journal in recent months, he has spoken about the atmosphere he encountered on arrival, saying that years of scrutiny had weighed heavily on the workforce. “There has been a cultural shift brought on by the challenge that has been put at Ferguson’s,” he said to me recently, reflecting on how repeated criticism had eroded confidence inside the yard.
Board capability strengthened through new non-executive appointments, and Duncan Anderson was later confirmed as permanent chair with a brief focused on restoring operational credibility. The yard’s earlier difficulties centred on a narrow workload and weak governance structures. The ferry programme became the dominant activity inside the yard, leaving little flexibility when schedules slipped or costs rose.
Work now appears more varied. Fabrication activity tied to the Royal Navy’s Type 26 frigate programme has joined the ferry build in the order book, and delivery milestones now include a completed vessel as well as a defined schedule for the remaining ferry.
Audit reporting continues to describe internal assurance as limited, though it also records progress in financial controls and management information. The environment is more structured than it once was, which matters for a business operating under public ownership.
What the money and audits say
The company’s finances underline why discussion of recovery remains cautious. For the year ending March 2025 the group reported a pre-tax deficit of £2.742 million, up from £1.322 million the year before, reflecting ongoing programme costs and investment in restructuring.
Government support continues to underpin the yard’s operations. Audit Scotland recorded funding of £3.3 million to cover “under-recoveries” associated with future development work and tendering activity outside the Glen Rosa programme. A £7 million working capital loan was also provided to manage cash flow timing.
A letter of support from the Scottish Government extends for at least twelve months beyond approval of the accounts, confirming that public backing remains central to the yard’s stability. Auditors nevertheless noted improvements in budget reporting and internal cost analysis. Management information is more detailed and productivity tracking more systematic than in earlier years.
Workload and operational progress
A significant change inside the yard lies in the expansion of work beyond ferry construction. Structural fabrication for the Royal Navy’s Type 26 programme has been undertaken at Port Glasgow, with completed sections transported to BAE Systems’ yard in Govan. A contract agreed in July 2025 covered three major structural units for HMS Birmingham. The work has been widely described as sustaining around 300 jobs for several years.
Speaking to the UK Defence Journal recently, Thomson described the defence work as part of a longer industrial strategy rather than a temporary lifeline. He said the yard is using the opportunity to demonstrate its capability to larger shipbuilders operating elsewhere in the UK. “We want to be in a position of demonstrating to BAE Systems we have the capability, capacity and skills to deliver on time and quality,” he said.
The aim, he added, is to build a portfolio of work spanning ferries, defence support and commercial activity so that employment levels remain stable across different phases of production.
Programme management continues to face scrutiny as construction progresses on Glen Rosa. Inspections reported to Holyrood in late 2025 identified corrosion within stern tubes and deterioration in sections of the underwater hull coating, issues that required additional dry dock work and adjustments to the commissioning schedule. Management has pointed to improvements in digital production control, planning systems and manufacturing processes as part of the response. Those changes reflect a broader effort to rebuild discipline inside the yard.
Political decisions will shape the next phase. The Scottish Government has signalled its intention to directly award four vessels to Ferguson Marine, including two ferries under the Small Vessel Replacement Programme and two research vessels replacing Minna and Scotia. The proposal must still pass subsidy control and value-for-money tests before contracts are finalised.
During recent discussions about the yard’s long-term role, Thomson described Ferguson Marine to me as part of the wider UK shipbuilding ecosystem rather than a standalone prime contractor. “You have six or seven major yards across the UK. We want Ferguson’s in there as part of that infrastructure,” he said.
Delivery will ultimately decide whether that ambition is realised. Reputation in shipbuilding tends to follow the ships themselves, and confidence returns when vessels leave the yard on schedule and enter service without controversy.
