The light battlecruiser shown is either 'Courageous' or 'Glorious' (both 1916), probably the former which had her funnel searchlights at one level while those of the 'Glorious' were at staggered heights. The small sailing craft on the right appears to have a twin lateen rig (which is Mediterranean) but this may be illusory for lug sails on a naval boat or an Orkney yole, which might suggest Scapa Flow as the location though it could be elsewhere in Scottish waters.