ABOUT 120 jobs are at risk after an Isle of Wight boat company went into administration despite having £21m worth of orders.

South Boats Special Projects Ltd manufactures vessels for the offshore wind power industry.

The Cowes firm has called in administrators from corporate recovery specialists Chantrey Vellacott DFK.

David Clements, of Chantrey Vella-cott DFK, said South Boats had an order book of £21m and the possibility of another £35m but cash flow had “become critical”.

He added: “The root of the financial problems the company finds itself in is mainly due to the challenge of rapid growth, significant design investment, new product introduction and expansion of manufacturing footprint.

“The possibility of the company continuing without a further investor is not possible. To protect the company while further investment is sought the directors have filed a notice of intention to appoint administrators.

“South Boats is continuing to trade and fulfil its orders and we are working with the management team to conduct a full review of its business and are assisting in every way we can.”