Thanks for the replies.
@T11 there is no ply on the transom. This is what it looked like before the repair.
I picked it up today and it now has a piece of 80X6 stainless steel flat bar running across the inside across the bolts as a brace. This seems to have stiffened it up a lot now , however would like to know the extent of the rot , if any at all.
I first noticed this when I was washing down after a trip to Rotto. There was no definite incident that would have contributed to it that I know of. I have though pushed the boat rather hard in the past into swell and chop where the whole boat has "bounced" and shuddered into oncoming waves.
As you can see, I was lucky not to lose the 130hp off the back