ICONIC Port Glasgow shipyard Ferguson’s has plunged into administration and 70 staff have been made redundant in a devastating hammer blow.

A bombshell announcement was made to workers at the last commercial yard on the River Clyde yesterday morning.

Shortly after arriving to begin their final shift of the week, staff were left reeling as they were told they no longer had a job.

In another cruel twist for the devastated employees, yard bosses and administrators KPMG said there was no cash left to pay wages for their last week.

Grown men who worked all their days at the yard, and young apprentices who were close to serving their time, were reduced to tears after the news was delivered.

John McMunagle, from Greenock, has worked at Ferguson’s for nearly 20 years and is the welders’ union steward.

He told the Tele: “It’s over.

“There’s no buyer and the site has been put into care and maintenance.

“The administrators said they don’t want to give anyone false hope.

“The annoying thing was that they had us working this week knowing they never had the money to pay us.

“There’s been tears here this morning.” Ferguson’s employed 77 people, including almost 60 full-time workers out in the yard, plus five apprentices and office staff.

Many acknowledged the order book had dried up but added that there was still some work to keep them going, including a ‘half-built ship’ and the construction of lifting beams for Rosyth.

But the Tele understands the company simply ran out of money with nothing left in the bank to pay for wages or materials to keep the site ticking over.

A source also revealed that there are orders in the pipeline but Ferguson’s chiefs simply couldn’t keep the yard afloat and wait for them.

Mr McMunagle said: “There’s been something going on for weeks. We asked for a meeting in April.

“But we were called into a meeting first thing yesterday morning and they told us we are out of a job from dinner time.

“The company can no longer pay wages, holidays or redundancy money.

“We knew the work was slow but there was no warning at all.” Insiders say that alarm bells started ringing when yard chief executive Alan Dunnet, who they’d rarely seen of late, was said to have made three visits inside a week.

Mr McMunagle said: “The owners came in and started taking the ship models, which are worth a lot of money, put them in a van and took them away.

“There is talk of bringing in a skeleton staff but I don’t think anybody will come back.

“It’s a real tragedy as there’s guys in their 60s in here — some who have been here 34 years — who maybe don’t have the necessary skills required to go elsewhere like Rosyth, who are apparently in need of welders and platers.” Ferguson’s was founded in 1903 and is a yard of considerable significance.

It has had its ups and downs over the years, with regular crisis points reached.

The lack of regular work meant the Newark yard has long been mired in doubt over its long-term future.

But the company has been no stranger to major deals in recent times, which sparked a mini-revival that kept the loyal workforce in a job.

The firm secured a £3.2 million contract in 2010 to convert an Asian-built barge into a support vessel for the energy sector.

There was a workforce back then of around 120.

One of the biggest deals in years was a huge £20m contract in 2011 to build two new ‘world-first’ CalMac hybrid electric-diesel ferries.

The Scottish Government contract secured the jobs of 75 people and created an additional 100 posts.

It was a proud return of shipbuilding to the Lower Clyde after Ferguson’s spent many years ‘diversifying’ its operations into other sectors in a bid to keep the firm sustainable for the future.

The contract helped the company back into the black and the Newark yard made a near-£500,000 profit in 2012.

The following year workers, management and guests greeted the launch of the second new-built ferry — MV Lochinvar — with fanfare as it slipped into the Clyde.

Just three months ago the Tele graph revealed how more than 500 youngsters applied for six new apprenticeship posts at Ferguson’s as bosses backed a national drive to get more young people in the area into work.

But the company has again found itself in trouble and it remains to be seen what the future holds for the iconic Clydeside yard.

Accountants KPMG have been appointed as joint administrators. They told the Telegraph that Ferguson’s had experienced ‘significant cash flow pressure in recent months’ and said its lack of financial strength hindered its ability to secure new vessel contracts from its core customer base.

This was compounded when recent attempts to secure investment proved unsuccessful.

They said they ‘regretted’ having to make 70 staff redundant with immediate effect and added that they are now assessing all available options to complete the firm’s remaining work in progress, and identify whether an early sale of its business, infrastructure, and assets can be secured.

Blair Nimmo, joint administrator, said: “Ferguson Shipbuilders is a leading name in the industry with a rich heritage dating back more than 110 years and is the last commercial shipbuilder operating on the River Clyde.

“The group’s infrastructure and unique offering has earned it global success in recent years, principally from the building of two ‘world first’ diesel hybrid ferries.

“However, a lack of significant orders and mounting cash flow pressure has led to the group’s inability to continue trading.

“We would like to thank staff for their co-operation during this difficult period.

“We will be working with employees and the relevant government agencies to ensure that the full range of support is available to all those affected.

“We would encourage any party who has an interest in acquiring the group’s business and facilities to contact us as soon as possible.”