THE party is over, the guests have gone home, the flags have come down, the band has packed its instruments away and all there is left is the memories of a Southampton tradition stretching back almost a century.

It was a bittersweet moment when the last Royal Navy vessel to be built in Southampton went down the slipway at the Woolston shipyard of the VT Group, known for years in the city as Vosper Thornycroft.

Sadness as the launching of the vessel marked the end of an era of shipbuilding for the senior service that has been at the centre of Southampton's heritage for decades.

Happiness that the company has delivered another quality vessel to the Royal Navy and this time it was part of a groundbreaking leasing contract that will probably mean further orders in the years ahead.

The band of the Royal Marines played Rule Britannia, youngsters waved Union Jacks, ladies wore large hats and military men were in full uniform as HMS Mersey, an offshore patrol vessel, eased herself down into the water of the River Itchen. Around 2,500 people were on hand to witness this moment in Southampton history - many employed at the yard all their working lives, others had lived side-by-side with the base in the streets surrounding VT's workshops and berths in Victoria Road.

It was in 1904 that John I Thornycroft switched his London shipyard from Chiswick to Woolston to establish one of the great names in British maritime history.

In the mid-1960s the company merged with Portsmouth based Vosper and created a reputation for building naval vessels at the leading edge of design.

Now, gradually the place is closing down. Already most of the workers have moved to the company's new shipbuilding facility at Portsmouth Naval Base and by March VT will just be a memory in Woolston.

In April the 33-acre site was sold for £15m and already plans are being drawn up for new homes and commercial development on the prestigious waterfront site.

VT is preparing for the development and construction of the nation's new breed of warship, the Type 45 destroyer and the company also has high hopes of clinching a slice of the lucrative contract to design and build the next generation of aircraft carrier for the UK.

For these projects Woolston is just too small and despite the yard's reputation for quality workmanship, second to none, Southampton's role has come to an end.