The prototype locomotive was built in 1947 and served as a departmental shunter at Hither Green depot as number DS1173, before being transferred to the capital stock list as D2341 in 1967.

A clear line of development can be seen in the Class 04 from the 0-4-0DM locomotives built by Andrew Barclay and Drewry/Vulcan Foundry in the early 1940s.

The design continued to develop during the construction period, although this was generally confined to minor changes, including the diameter of the wheels.

The front running plate was cut out and the steps inset to provide a safer location for a shunter riding on the locomotive; to facilitate this, the locomotive straight air brake reservoir tank was relocated underneath the centre of the running plate.

The first four of these locomotives (11100-11103, later D2200-D2203) were fitted with side skirting and cowcatchers for use on the Wisbech and Upwell Tramway and on the Yarmouth Docks tramway system, since British law requires locomotives running on unfenced street trackage to be so equipped for the protection of pedestrians and animals.

The class was distributed throughout the British Railways system, but the significant decline in the traffic for which they were designed resulted in a large surplus of shunting engines on the network.

The engine is a Gardner 8-cyl, 4-stroke 8L3 developing 204 hp (152 kW) at 1200 rpm, connected to a Wilson-Drewry CA5 R7, 5-speed epicyclic with RF11 spiral bevel reverse and final drive unit mounted on a jackshaft.

[7] The Class 04 design was the basis of some related narrow gauge industrial engines built for export overseas.

An example of this was the Tasmanian Government Railways V class which ran on 3 ft 6 in gauge, necessitating an outside frame design, which was the main visible difference.