A Devon shipyard is pinning its hopes on government talks to safeguard the future of 800 workers.

Appledore Shipyards wants government backing to win a new contract.

If it fails to win the contract, all work at the yard will be finished by next summer.

Details of the �50m order for a barge are being kept secret to avoid prejudicing the company's chances of winning it.

Appledore: Current work finishes next July

But managing director Jim Wilson, said: "We must have another order pretty quick in order to maintain continuity for the steelworkers.

"I am not despondent. If we can get some assistance in the form of advance payment guarantees, I would feel very happy."

Bideford mayor Andrew Smith, who works at the shipyard, said: "It's crucial. We need the assistance of the government.

"There is not much commercial shipbuilding in this country any more."