The company was formed on 30 September 1927 when Hubert Scott-Paine bought and renamed the Hythe Shipyard with the intention of transforming it into one of the most modern mass production boat building yards in the country.
Together with his chief designer, Fred Cooper, the company produced the 26-foot single step hydroplane racing boat Miss England I.
The trials of this and other boats was carried out by T. E. Shaw (T. E. Lawrence) on behalf of the Royal Air Force, and he and Scott-Paine worked together over the next few years.
These tenders were powered by twin 100bhp Meadows petrol engines giving a maximum speed of 29 knots (some of the later ones were fitted with Perkins S6M diesels).
In 1939, due to the difficulties in obtaining British engines, Scott-Paine took PT-9 to the US to enable Elco to mass-produce PT boats using Packard motors.