Joy has turned to despair for the team restoring a historic paddle steamer... just a week after finally bringing her home.

The Medway Queen Preservation Society has been working tirelessly to rebuild the ship which saved thousands of Second World War soldiers.

The group’s dream of bringing her back to Medway following restoration work in Bristol came true last Tuesday, when she was met by a cheering crowd.

Scroll down for video

But just days later the society has announced funding has run out and staff have been given notice. The ship will have to be mothballed if the group doesn’t receive an immediate cash injection.

"It is not the most pleasant thing to have to do, especially so soon after her coming home. It is a very sad day for us” - project manager Bob Stokes

The society only has enough money to continue until the end of the year, so if no funds comes in, work on the vessel will come to a halt.

Project manager Bob Stokes said: “At this stage we don’t think we can carry on. We will have to mothball the ship.

“Even if we could apply for Lottery funding tomorrow, which we can’t because it is a complicated process and we need to get it right, we wouldn’t anticipate getting the money for a year.

“We will be putting a bid to the Lottery for the full amount needed to complete the project, which is £2.5m to £3m, but the issue is the short term. To carry on next year we would need another half a million.”

The society received £1.6m EU funding from the Interreg Heroes 2C programme and £1.9m from the Heritage Lottery Fund.

The Lottery cash was provided for the restoration of the hull in Bristol and to bring her back to Medway.

The society can apply for more money but we were unable to do so until the vessel was safety back home. The EU funding is due to run out at the end of the year and there is no more funding available until 2015.

The project employs four staff and six Mid Kent College apprentices, who have all been given their notice.

Video: The Medway Queen returns to Kent last week

Mr Stokes said: “We had always hoped that something would turn up but nothing has. It has got to the stage now that we have to give notice.

"It is not the most pleasant thing to have to do, especially so soon after her coming home. It is a very sad day for us.”

www.medwayqueen.co.uk/To find out how to donate to the society, call 01645 575717 or visit