UK ship repairer secures major German cruise contract
Southampton Marine Services Ltd, better known as SMS Group, has landed a £3 million refit contract with the German cruise line AIDA Cruises. The project, which involves upgrading the interior of the cruise ship AIDA Diva in Marseille, marks the company’s largest European undertaking so far. This deal was made possible through financial backing from UK Export Finance (UKEF) under the Export Working Capital Scheme, with Santander UK providing the loan facility.
The government’s export credit agency support has allowed the Southampton-based firm to take on large-scale international projects, strengthening its presence in the competitive European cruise market. The contract is also expected to generate new employment and training opportunities within the UK’s marine engineering industry.
Boost for British marine engineering and jobs
Each refit project of this scale enables SMS Group to expand its workforce and engage additional subcontractors. The new AIDA agreement, one of three refits planned, underlines the growing demand for British technical expertise in ship repair and outfitting. It also supports the UK government’s ambition to promote export-led job creation in manufacturing and engineering.
Established in 2016, SMS Group combines decades of industry knowledge from several leading marine companies, including Burgess Marine, Testbank, and Small & Co. From its Southampton base, the company delivers both ship-side and shore-side services, focusing on ship repair, interior outfitting, and marine engineering solutions.
Expanding presence in Europe’s cruise market
In recent years, SMS Group has developed a reputation for high-quality interior refurbishments for cruise lines in the United States and Europe. The AIDA Diva project, the first in a series of three, represents a significant milestone as the company extends its footprint deeper into the continental cruise industry. This success positions SMS Group as a trusted British partner for international ship operators seeking modern, efficient, and sustainable refit services.
Government-backed export finance driving growth
The Export Working Capital Scheme (EWCS) is part of UKEF’s efforts to ensure that UK companies can access the funding required to complete overseas contracts. For SMS Group, the scheme provided the financial flexibility needed to accept complex international projects and manage cash flow effectively during execution.
Richard Armstrong, Export Finance Manager for Hampshire and the Isle of Wight, noted that the deal highlights how UKEF can empower British firms in the marine sector to expand their global reach while supporting domestic employment. He said that initiatives like the EWCS directly contribute to UK job creation and export expansion.
SMS Group’s Commercial Director, Nicholas Warren, described the support from UKEF and Santander UK as “transformational,” enabling the business to grow its capacity and pursue higher-value contracts without compromising on quality standards. Similarly, Santander UK’s Senior Director for Trade and Supply Chain Finance, Tee Cato, emphasized that this partnership demonstrates the significance of the marine sector to the UK’s wider economy.
UKEF’s record year in supporting UK exporters
This development follows the release of UKEF’s 2024–25 annual report, which recorded £14.5 billion in new financing. That support helped over 667 UK businesses enter global markets and sustain nearly 70,000 jobs nationwide. With projects like SMS Group’s AIDA contract, UKEF continues to play a vital role in ensuring British engineering firms remain competitive in international trade.
For Southampton Marine Services, the AIDA contract is more than just another project—it reflects the growing confidence of European clients in the UK’s marine expertise. Backed by government finance and driven by skilled professionals, the company is setting new standards for British excellence in ship repair and interior outfitting across global waters.