Watford Leisure PLC
Report and Financial Statements 2008  CONTENTS
 
 
01  Highlights
  
02 Chairman’s statement 
 
06  Chief Executive’s report
10  Board of directors 
 
11  Corporate governance report 
 
13  Directors’ report
  
16  Independent auditor’s report
  
18 Consolidated income statement
 
19  Consolidated balance sheet
20  Consolidated statement of changes in equity
21  Consolidated statement of cash flows 
22  Company balance sheet
23  Company statement of changes in equity
24  Company statement of cash flows 
 
25  Notes to the financial statements
45 Company information Highlights
2008 2007 2006
Revenue £22.4m £29.9m £8.5m
Profit / (loss) before tax £0.4m £8.0m £(5.6)m
Earnings / (loss) per share 1.0p 17.4p (29.9)p
Stadium
Successful completion of improvements to the Rous and Rookery Stands and significant progress on building 164 
key worker housing units behind the Rookery Stand. Further development and ground improvements planned.
Football
Team finished 6th in the Championship, losing in the semi-final of the play-offs.
Community
Awarded the Community Club of the Year by the Football League.
Management 
Football management and business management remain focused on delivering success on and off the pitch.
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 01
www.watfordleisureplc.com Chairman’s statement
Graham Simpson
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 02
On behalf of the Board of Directors I am pleased to present the 
Annual Report and Financial Statements of Watford Leisure PLC 
for the year ended 30 June 2008.
Much was expected of the team last season as it competed once again in the 
Championship. As explained in last year’s annual report, we had decided in the summer 
of 2007 following relegation from the Premiership, to maintain the level of expenditure 
on football from the previous season in an effort to give the manager and his team the 
best possible chance of being re-promoted. For much of the season it looked like the 
strategy was going to work but following a series of disappointing results in the last 
quarter of the season, we finished in 6th position and lost in the semi-final of the 
play-offs. It is worth mentioning that 6th in the Championship represents one of the best 
ever finishes of Watford Football Club (“the Club”). However, given the early season 
promise, it is fair to say that not achieving one of the two automatic promotion spots was 
a big disappointment.
Financial Results
This financial year recorded a fall in revenue of £7.5m to £22.4 million due principally to 
the reduction in the Premier League distributions following relegation, lower matchday 
revenues and a reduction in cup revenues when compared to the previous year. The 
operating loss before interest, player trading and the premium received on the grant of 
a long lease of £5.1m (2007: profit of £3.1m) reflects not only the fall in revenue but also 
the fact that expenses, excluding amortisation, were running slightly higher than last year 
-  £28.1m against £27.3m in 2007. The profit on ordinary activities was £0.4 million (2007: 
£8.0 million).
Football Team
The 2007/08 season was one of high expectations for the Club, players and supporters 
alike. Last season might be summed up as a “game of two halves”. The departure of 
Hameur Bouazza was made good by the arrival of Nathan Ellington towards the end 
of August 2007. The team started the season in sparkling form with both Marlon King 
and Darius Henderson scoring freely and led the Championship for the best part of five 
months. In January 2008 Marlon King moved on to Wigan. To many observers this may 
have seemed to be a strange decision given Marlon’s undoubted scoring and all-round 
football abilities. Nevertheless, Marlon had decided that the time was right for him to 
move to another club and we decided, with regret, not to stand in his way. The transfer 
cash received enabled us to strengthen our squad with the purchase of John Eustace, 
Leigh Bromby and Mat Sadler, all of whom quickly settled into the 1st team. However, 
from February onwards the goals were hard to come by and following a string of seven 
consecutive draws, the team’s form and results dipped towards the end of the season. 
However, the good foundation laid in the first half of the season meant that the team were 
still able to cling on to 6th place and claim a play-off semi-final with Hull City. 03
www.watfordleisureplc.com
Strategic Review
Following the defeat by Hull City in the play-off semi-final, the Board immediately 
embarked on a strategic review of the Club’s operations, both football and commercial. 
In anticipation of the cessation of parachute payments at the end of the 2008/09 
season, it was clear that the cost base had to be reduced significantly in order for the 
Club to achieve cash neutrality within a 24 month timeframe. To this end we have 
seen a number of player departures - Darius Henderson to Sheffield Utd, Danny 
Shittu to Bolton Wanderers, Nathan Ellington on a season-long loan to Derby County, 
Jordan Stewart (contract expiry) and Matt Jackson,  Douglas Rinaldi  and Santiago 
Aloi (contract terminations). The effect of the player departures has been offset in part 
by the arrival of John Harley to strengthen the left side of defence and midfield and 
Grzegorz Rasiak (on loan from Southampton) to strengthen the attack and also by the 
promising early season form shown by younger members of the squad. However the 
results have continued to be disappointing and currently we are in 22nd position in 
the Championship, and in the relegation zone. Indeed we have only won twelve of the 
last 48 league games since November last year. Following the Blackpool match on 1 
November 2008 I sat down with Aidy Boothroyd and we agreed that the time was right 
for a new manager to take the Club forward. This was a mutual decision and one which 
I feel was in the best interests of both the Club and Aidy himself. Aidy has been a great 
manager for the Hornets having guided us into the Premiership in April 2006 and an 
FA Cup semi-final last year and he leaves with best wishes from everyone at Watford 
Football Club. 
Malky Mackay, the reserve team coach, has been appointed caretaker manager. He 
will be assisted by Martin Hunter, the current first team coach, Sean Dyche the former 
Hornets defender and Alec Chamberlain as goalkeeping coach.   
Whilst Mark and I will continue to manage the Club through this difficult transition 
period, as part of the wider strategic review the Board is committed to try and find  
investors who can help take the Club forward and provide a cash injection. However 
we cannot “budget” for new investment and must remain focused on defining and 
executing a stable trading and financial plan for the Club. We will endeavour to achieve 
the financial objectives without compromising the values of the Club and in particular 
its strong community links and investment in its academy and in the youth of Watford 
and surrounding areas generally. 
Vision 2010+
The management and staff continue to work towards the Club’s Vision for 2010 
and beyond which is designed to enhance the Club’s reputation in the community 
and provide further sustainability for the business. We are very proud to have been 
awarded Football League Community Club of the Year 2007/08. It is very pleasing that 
the work undertaken week in, week out, by the Club’s dedicated staff in running many 
and varied projects in Watford and surrounding districts is officially recognised by our 
peer group. Youth development is an integral part of the Vision and we are very excited 
by the promise shown by the current Academy teams at all age groups. 
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 Chairman’s statement continued
Graham Simpson
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 04
www.watfordleisureplc.com
The collaboration with The Harefield Academy provides a unique opportunity for the Club 
to develop not only its youngsters’ footballing skills but also their educational and life 
skills. We believe that the arrangement is a ground-breaking one at least as far as the 
UK is concerned and look forward to the current crop of students becoming professional 
footballers with Watford. We are very proud of the work being undertaken in the Academy 
and I would like to take this opportunity to thank David Dodds (who left the Club in August 
2008) for his contribution and for the on-going work of Mark Warburton and Nick Cox and 
all their staff for their sterling efforts.
Stadium Redevelopment
Work continued throughout the season to redevelop Vicarage Road Stadium and we were 
pleased to see the progress being made to both the south face of the Rookery Stand and 
the south-west corner of the stadium. A notoriously difficult site to manage and develop, 
work on the key-worker housing to the south of the stadium has been subject to several 
challenges during this period, which has meant for some delays to the original schedule. 
Whilst the key-worker housing itself will not be completed until March 2010 the foundation to 
the south-west corner should be completed by the end of January 2009. 
The Club has been granted planning permission for a new East Stand on the basis of 
5,000 seats and the provision of 3,500 square metres of concourse, lobby and usable 
non-matchday office space. However given the current financial constraints, we are 
reviewing the options for the East Stand and considering an alternative structure which 
would be cheaper to build. 
Options are also currently being assessed for the ongoing use of the Red Lion public 
house, which was vacated by its previous tenants at the end of April 2008.
People
The Club is going through a difficult transitional period and I must thank the fans and all 
those involved in the running of the Club for their continuing support. Following another 
testing and rigorous season in 2007/08 I am pleased to report that all of the Club’s staff 
again contributed greatly to the many successes we enjoyed during this period - both on 
and off the pitch. Much work is undertaken behind the scenes and for this we are indebted 
to Mark Ashton, Chief Executive and his team.
And finally, I would like to thank sponsors, customers and supporters without whom we 
would not have a football club.
Graham Simpson
Chairman  Chief Executive’s report
Mark Ashton
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 06
Overview of the Season
The 2007/08 season was an exciting one for the Club as the football team competed 
once again in the Championship. Operationally we focused on completing the 
investment projects initiated during our year in the Premiership.
Prior to the start of the 07/08 season, we completed the improvements to the concourse 
and facilities, including opening the new V-Bar, in the Rookery Stand. In addition we 
refurbished the Executive Boxes in the Rous Stand as well as the other corporate 
hospitality lounges. In September 2007 we entered into a long lease with St. Pancras & 
Humanist Housing Association for the space behind the Rookery Stand and south and 
north-west corners. The housing association is responsible for building and operating 
164 key worker housing units which will provide much needed accommodation for 
nursing and other staff at the Watford General Hospital. The construction work is 
complicated by the fact that the stadium has to be fully operational on matchdays 
and we are indebted to the contractors, Kier, for working within these constraints and 
minimising the impact to the normal running of the stadium. As part of the project 
plan, the housing association undertook to build the foundation to the new southwest 
corner which will in time house the changing rooms, matchday control suite and other 
matchday facilities. We expect the contractors to hand over the south-west “shell and 
core” by the end of January 2009. 
One of the knock-on effects of the housing project is that we had temporarily to relocate 
the Club’s administrative offices. We moved into new premises in Tolpits Lane in July 
2007 on a short term lease. Whilst the new office has added to our administration 
costs, it has enabled us to bring together under one roof most of the Club’s operational 
departments including not only commercial staff but also the Trust, football recruitment 
and Academy.   
As the Chairman has explained in his statement, we face a significant challenge in 
managing down the Club’s cost base should we not get promoted this season as the 
parachute payments come to an end in June 2009. Whilst a new and improved TV deal 
has been agreed by the Football League, there is a big difference in the allocation of 
TV revenues to a Championship versus a Premiership club. The ever increasing player 
wage inflation, fuelled by the fantastic sums being paid to top Premiership players, 
makes the challenge of “balancing the books” in a Championship club that much 
more difficult. We realise that some of these things we have to do will meet with some 
criticism. However there are some decisions we just have to make in order to protect 
the Club going forward. On the plus side we are continuing to invest in our Academy 
and youth development. The Club prides itself on the number of its professional players 
who have come through the Club’s Academy. We not only have the home grown 
established first team players such as Tommy Smith, Richard Lee, Adrian Mariappa, 
John-Joe O’Toole and Lloyd Doyley but we look forward  to the future with optimism 
with Academy players coming through such as Jordan Parkes, Theo Robinson, Liam 
Henderson, Lewis Young, Billy Gibson, Ross Jenkins and Dale Bennett. Financial Review
Revenue for the year ended 30 June 2008 was £22.4 million (2007: £29.9 million) - a 
decrease of £7.5 million. This is due primarily to the drop in league funding following 
relegation from the Premier League. In addition the average match attendance was 
16,870 against 18,882 last season in the Premiership. The drop in average attendances 
flows through into lower ticket sales and to a lesser extent lower matchday catering 
income (albeit the home supporters spent more per head in the kiosks on matchdays). 
Cost of sales (excluding amortisation of player registrations) increased year on year by 
£1.4 million which is driven primarily by higher costs of running the football team and 
Academy. The amortisation and impairment charge on capitalised players’ registrations 
increased by £3.0 million to £5.8 million reflecting the new squad members brought on 
board in 2007. Administrative expenses decreased by £0.6 million to £6.2 million. The 
profit on disposal of players’ registrations of £7.4 million is comprised primarily of the 
sale of Hameur Bouazza’s registration to Fulham FC in August 2007 and Marlon King’s 
registration to Wigan Athletic in January 2008 together with appearance and sell-on 
payments for players transferred in previous seasons. The exceptional income of £4.6m 
relates to the lease premium received in connection with the 125 year lease granted by 
the Club to the St. Pancras & Humanist Housing Association for the key worker housing 
units at the rear of the Rookery Stand. Given the length of the lease, the transaction is 
being treated as an outright disposal and recognised in full in the Income Statement in 
the year of receipt.  
2008 2007
Revenue £22.4m £29.9m
Cost of sales £(21.9)m £(20.4)m
Administrative expenses £(6.2)m £(6.8)m
Other income £0.6m £0.4m
Operating (loss) / profit before interest, player trading, 
amortisation and exceptional items 
£(5.1)m £3.1m
Profit before taxation £0.4m £8.0m
Cash (absorbed by) / generated from operations £(5.7)m £5.1m
Wages to revenue ratio 79% 58%
League position (Championship/Premiership) 6th 20th
Business Review
The key financial and performance indicators are as follows:
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 07
www.watfordleisureplc.com     COMMUNITY CLUB 
  OF THE YEAR 
WINNER 2008 Chief Executive’s report continued
Mark Ashton
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 09
www.watfordleisureplc.com
Community 
During the 2007/08 season the Club was named as the Football League Community 
Club of the Year. This award is real recognition for Watford Football Club and its 
community partners and builds significantly on the Club’s family and community 
traditions.  For many years the Club has taken a leading role in the local community and 
has taken its Corporate Social Responsibility (“CSR”) agenda very seriously. However, 
over the last two years the Club has taken a strategic decision to place community 
at the heart of the business and central to the Club’s longer term vision to be a true 
community partner.  
The WFC Community Sports & Education Trust (“the Trust”) now has a team of over 20 
full time members of staff and a 50 plus strong coaching team that is active across West 
Hertfordshire, Harrow and Hillingdon. The Trust has developed a wide range of projects 
utilising sport and Watford Football Club as a vehicle for engagement in education, 
health and social inclusion initiatives reaching over 100,000 participants per annum. 
The Trust works with a wide range of partners from the private, public and voluntary 
sectors, with partnership development being vital to its recent progress, expansion and 
national recognition at the Football League Awards. The Club supports the Trust in its 
efforts to represent the Club in local communities, making a positive difference to the 
lives of children and young people. The Club and the Trust together can be proud of our 
community work and we look forward to further enhancing our growing reputation in the 
coming years.    
On behalf of the Board of Directors I would like to place on record our gratitude and 
congratulations to Julian Winter, Rob Smith and their staff on the award and the 
progress made in the last year. 
Outlook
With our parachute payments coming to an end in June 2009, we have to walk 
a tightrope of balancing the ever increasing demands of fielding a competitive 
Championship football team with financial reality. I am confident that we will navigate 
through this difficult period and become stronger as we focus in on the Club’s traditional 
strengths of loyalty, family and community.  
 
Mark Ashton
Chief Executive Graham Simpson  Chairman
Graham Simpson is Chairman of both the Company and Watford Football Club. He leads the board of 
directors and is involved in consultation for, and active on all policy matters relating to the Company and 
the Club.
Graham is a lifelong Watford supporter, having seen his first match at Vicarage Road in 1959. Having 
taken over in September 2002, Graham has since celebrated six years as Chairman.
Following a 12-year acting career, in 1978 Graham formed Simply Travel, a holiday company that grew 
rapidly to carry over 50,000 clients. He sold the business in 1999 and has since formed Simpson Travel 
and acts as a non-executive director.
Andrew Wilson  Non-executive Director
Andrew Wilson is a non-executive director of the Company and the Club and is involved in all policy 
decisions relating to financial, administrative and strategic matters. He is also the Chairman of the 
Company’s Audit and Remuneration Committees.
Andrew joined the board as a non-executive director in 2002. He is a non-executive director of various 
companies including London Town Group plc and Anne Street Partners Limited.
 
Mark Ashton Chief Executive
Mark Ashton, as Chief Executive of both the Company and the Club, is responsible for the day to day 
activities of the Company and the Club, and implementation for all policy decisions of the board, and 
leads the Club’s senior management team. He consults on a day to day basis with both the Chairman 
and Andrew Wilson, and is a member of the Company’s Audit and Remuneration Committees.
After playing as a professional footballer Mark left to establish his own engineering business, before 
returning to football as a member of West Bromwich Albion’s coaching staff. By 2004 Mark had been 
given responsibility for new projects, stadium redevelopment and youth and community operations.
In 2004, Mark was invited to join Watford Football Club as Chief Executive, to lead the Club’s senior 
management team.
Board of Directors
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 10
www.watfordleisureplc.com General principles
The Board recognises the importance of good corporate practice and is committed to conducting the group’s 
operations in accordance with the best principles of corporate governance. This report sets out how the 
principles of good governance and code of best practice identified in the Combined Code issued by the 
London Stock Exchange are applied by the company.
The Board
The Board consists of two executive and one non-executive directors.
The Board meets regularly and is responsible for group strategy, acquisition and divestment policy and overall 
financing of the group. It is ultimately responsible for the direction and management of the group, although 
the Chief Executive is charged with the responsibility for running the group within a defined framework 
established by the Board.
Accountability and audit
Audit committee and audit
The Audit Committee as established by the Board, currently consists of one non-executive director (who is 
the Committee’s Chairman) and the Chief Executive. Written terms of reference of the Audit Committee have 
been drawn up which require it to consider and report to the Board on such issues as the group’s annual 
reports and interim reports, ensuring compliance with accounting policies and satisfying itself as to the 
adequacy of the group’s external audit and internal control procedures. The Committee meets at least once a 
year with the group’s auditors in attendance.
Internal financial control
The Board of Directors has overall responsibility for the group’s systems of internal control which are 
designed to provide reasonable, but not absolute, assurance against material misstatement or loss. The key 
features of the group’s system of internal financial control are as follows:-
 (a) detailed budgets and plans which are approved by subsidiary and group boards;
 (b) regular consideration by the Board of actual results compared with budgets and    
       forecasts;
 (c)  compliance by the subsidiaries with group operating procedures and policies;
 (d) annual review of the group’s insurance cover;
 (e) defined procedures for the appraisal and authorisation of player transfers and capital   
  expenditure; and
 (f)  regular reporting of borrowing and facilities to the Board.
The Board has reviewed the operation and effectiveness of the group’s system of internal financial control for 
the financial year and the period up to the date of approval of the financial statements.
Corporate governance report
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 11
www.watfordleisureplc.com Risk management
A risk management review has been previously undertaken by the group to identify, evaluate and manage 
key risks. Projections are made on a realistic basis in order to identify financial pressures in advance. The 
company maintains a rolling three year plan in respect of all key components of the group’s operation.
Compliance with the Combined Code
The group is not required to comply with the Combined Code as an AIM company, but seeks to comply with 
those provisions most appropriate to the group. We continue to review our corporate governance procedures 
to ensure they match the needs of the group.
 
Remuneration report
The Remuneration Committee is responsible for determining the emoluments of the executive directors, 
and consists of the non-executive director and one of the executive directors. The Committee makes 
recommendations to the Board on the company’s framework of executive remuneration and its cost.
GRAhAM SIMPSON
Chairman
13 November 2008
Corporate governance report continued
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 12
www.watfordleisureplc.com The directors present their report on the affairs of the group, together with the audited financial statements for 
the year ended 30 June 2008.       
Principal activities and business review
The principal activity of the company is to hold, as investments, the majority of the issued share capital 
of The Watford Association Football Club Limited and the whole of the issued share capital of Watford 
Catering Limited. The principal activity of Watford Association Football Club Limited continues to be that of a 
professional football league club. The principal activity of Watford Catering Limited is the provision of catering 
services.       
The group reported a profit before taxation for the year of £426,000 (2007 - £7,964,000). The development of the 
business during the year and the group’s position at the year end is considered in the Chairman’s statement on pages 
2 to 4 and in the Chief Executive’s report on pages 6 to 9.     
The Board have considered the risks and uncertainities that face the business which are principally related to the 
costs and revenues involved in maintaining a playing squad and trading in players, and of maintaining its league 
position. Information about financial risks and the use of financial instruments by the company and its subsidiaries is 
given in note 17 to the financial statements.        
          
The directors do not recommend the payment of a dividend. Accordingly, the profit for the year has been 
added to the deficit brought forward as shown in note 19 to the financial statements.   
    
Directors and their interests
The directors at 30 June 2008 together with their beneficial interests in the shares of the company are as follows: 
      
None of the directors has any interest in the share capital of any other group companies.
There has been no change of directors during the year.
In accordance with the company’s Articles of Association, Andrew Wilson is due to retire at the company’s 
forthcoming Annual General Meeting and, being eligible, will offer himself for reappointment.
The company has in place Directors’ and Officers’ Liability insurance with a third party.   
        
Substantial interests
Apart from the directors above and the shareholdings listed below, the directors are not aware of any party 
interested in 3% or more of the issued ordinary share capital at 13 November 2008.   
          
NAME          NUMBER OF ShARES PERCENTAGE 
Fordwat Limited 16,306,437 37.16%
Valley Grown Salads 12,781,953 29.13%
              ORDINARY ShARES OF 1P EACh    
30 JUNE 2008 30 JUNE 2007  
G M Simpson (Chairman) 7,368,796 7,368,796 
M A Ashton - -
A S Wilson 56,664 56,664
Directors’ report
for the year ended 30 June 2008
www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 13 Directors’ responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with 
applicable law and regulations.       
Company law requires the directors to prepare group and parent company financial statements for each financial 
year. Under that law the directors are required to prepare the group financial statements in accordance with 
International Financial Reporting Standards (IFRS’s) as adopted by EU and have elected to prepare the parent 
company financial statements on the same basis.       
The group and parent company financial statements are required by law and IFRS’s as adopted by the EU to 
present fairly the financial position of the group and the parent company and the performance of the group for 
that period. The Companies Act 1985 provides in relation to such financial statements that references in the 
relevant part of that Act to financial statements giving a true and fair view are references to their achieving a 
fair presentation. In preparing each of the group and parent company financial statements the directors are 
required to:          
   
 •  select suitable accounting policies in accordance with “IAS 8 Accounting Policies, Changes in   
  Accounting Estimates and Errors” and apply them consistently;     
 
 •  present information, including accounting policies, in a manner that provides relevant, reliable,   
  comparable and understandable information;      
 •  provide additional disclosures when compliance with the specific requirements in IFRS’s is insufficient  
  to enable users to understand the impact of particular transactions, other events and conditions on the  
  group’s financial position and financial performance; and    
      
 •  state that the group has complied with the IFRS’s, subject to any material departures disclosed and  
  explained in the financial statements. 
     
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at 
any time the financial position of the group and to enable them to ensure that the financial statements comply with 
the Companies Act 1985. They are also responsible for safeguarding the assets of the group and hence for taking 
reasonable steps for the prevention and detection of fraud and other irregularities.    
      
In so far as the directors are aware: 
 •  there is no relevant audit information of which the company’s auditor is unaware; and   
   
 •  the directors have taken all steps that they ought to have taken to make themselves aware of any  
  relevant audit information and to establish that the auditor is aware of that information.
The directors are responsible for the maintenance and integrity of the corporate and financial information included 
on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of 
financial statements may differ from legislation in other jurisdictions.     
          
Corporate governance
The Board’s report on the group’s corporate governance procedures is set out on pages 11 and 12.
Directors report continued
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 14
www.watfordleisureplc.com Payment of suppliers 
The group seeks the best possible terms from suppliers appropriate to its business and, in placing orders, gives 
consideration to quality, price and terms of payment which will be agreed with each supplier when details of 
each transaction are settled. The group will continue to honour its contractual and legal obligations and to pay 
contractors and suppliers on the dates agreed in contracts and purchase orders.
Being mindful that the group transacts with many small suppliers the group endeavours to meet the 
Government’s best practice guidelines and pay suppliers within thirty days from receipt of invoice whenever 
the invoice can be matched to an order and can be duly authorised with no queries arising thereon.                                                                                                                                         
   
Overall, the ratio expressed in days between the amounts invoiced to the Group by its suppliers and the amount 
owed to its trade creditors at 30 June 2008 was 29 days.      
      
Employees
The group places considerable value on the involvement of its employees and has set up processes and 
procedures to achieve good communication within the workplace. There are also written processes for 
Training, Development, Appraisal and Induction.
It is the group’s policy to give full and fair consideration to all applications from the disabled and it has a 
written Equal Opportunities Policy and Recruitment Process in place to achieve this end.   
    
Charitable and political donations
During the year the group made charitable donations amounting to £9,508. No political donations were made 
during the year.       
Going concern
As disclosed in note 1b to the financial statements the directors are confident that the group has sufficient 
funds to meet its financial obligations. For this reason they continue to adopt the going concern basis in 
preparing the financial statements.        
     
Post balance sheet events
Details of post balance sheet events are given in note 25 to the financial statements.   
        
Auditors
A resolution concerning the reappointment of Chantrey Vellacott DFK LLP as auditors of the company will be 
proposed at the forthcoming Annual General Meeting.
Signed on behalf of the Board
P J WASTALL
Secretary
Approved by the Board on 13 November 2008
www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 15 We have audited the group and parent company financial statements (the “financial statements”) of Watford 
Leisure PLC for the year ended 30 June 2008 which comprise the Consolidated Income Statement, the 
Consolidated and Company Balance Sheets, the Consolidated and Company Statement of Changes in 
Equity, the Consolidated and Company Statement of Cash Flows and the related notes. These financial 
statements have been prepared under the accounting policies set out therein.
This report is made solely to the parent company’s members, as a body, in accordance with section 235 of the 
Companies Act 1985. Our audit work has been undertaken so that we might state to the Company’s members 
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest 
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the 
Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with 
applicable law and International Financial Reporting Standards as adopted by the European Union are set out 
in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory 
requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly 
prepared in accordance with the Companies Act 1985.
We also report to you whether in our opinion the information given in the directors’ report is consistent with 
the financial statements. The information in the directors’ report includes that specific information presented 
in the Chairman’s Statement and the Chief Executive’s report that is cross referred from the Business Review 
section of the directors’ report.
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have 
not received all the information and explanations we require for our audit, or if information specified by law 
regarding directors’ remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report, and consider whether it is consistent with the 
audited financial statements. This other information comprises only the Directors’ Report, the Chairman’s 
Statement, the Chief Executive’s report and the Corporate Governance Statement. We consider the 
implications for our report if we become aware of any apparent misstatements or material inconsistencies with 
the financial statements.   Our responsibilities do not extend to any other information.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued 
by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to 
the amounts and disclosures in the financial statements. It also includes an assessment of the significant 
estimates and judgements made by the directors in the preparation of the financial statements, and of whether 
the accounting policies are appropriate to the group’s and company’s circumstances, consistently applied and 
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered 
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial 
statements are free from material misstatement, whether caused by fraud or other irregularity or error. In 
forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial 
statements.
Independent auditor’s report
to the shareholders of Watford Leisure PLC
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 16
www.watfordleisureplc.com Opinion
In our opinion:
 • the group financial statements give a true and fair view, in accordance with International Financial  
  Reporting Standards as adopted by the European Union, of the state of the group’s affairs as at 30  
  June 2008 and of its profit for the year then ended;
 • the parent company financial statements give a true and fair view, in accordance with International  
  Financial Reporting Standards as adopted by the European Union, of the state of the company’s  
  affairs as at 30 June 2008;
 • the financial statements have been properly prepared in accordance with the Companies Act 1985; and
 • the information given in the directors’ report is consistent with the financial statements.
Emphasis of matter - Going concern
In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy 
of the disclosures made in note 1b) to the financial statements concerning the group’s ability to continue as 
a going concern. Although the group made a net profit of £426,000 during the year ended 30 June 2008, at 
that date the group’s current liabilities exceeded its current assets by £13,125,000. The validity of the  going 
concern basis is dependent on the assumptions underlying the financial projections being accurate, the 
financial projections being substantially realised and the group’s ability to raise sufficient new capital to the 
extent that may be required. These conditions indicate the existence of a material uncertainty which may cast 
significant doubt about the group’s ability to continue as a going concern. The financial statements do not 
include the adjustments that would result if the group was unable to continue as a going concern.
ChANTREY VELLACOTT DFK LLP
Chartered Accountants
Registered Auditor
London
13 November 2008
www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 17 The notes on pages 25 to 44 form part of these financial statements.      
          
OPERATIONS 
ExCLUDING 
PLAYER TRADING 
PLAYER 
TRADING 
(NOTE 10)                                                 NOTES 2008 2007 
£000’s £000’s £000’s £000‘s
Revenue 2 22,363 - 22,363 29,912 
Cost of sales 21,908 5,830 27,738 23,303 
Gross (loss) / profit 455 (5,830) (5,375) 6,609 
Administrative expenses 6,180 - 6,180 6,773 
Loss from trading before asset
transactions and exceptional items
(5,725) (5,830) (11,555) (164)
Other operating income 3 578 - 578 426 
Operating (loss) / profit (5,147) (5,830) (10,977) 262 
Profit on disposal of players’ 
registrations
- 7,372 7,372 7,957 
Premium received on grant of 
long lease
5 4,558  - 4,558 -
Financing income 4 99 - 99 93 
Financing costs 4 (626) - (626) (348)
Profit / (loss) before taxation 5 (1,116) 1,542 426 7,964 
Taxation 7 - - - - 
Profit / (loss) for the year (1,116) 1,542 £426 £7,964
Attributable to:
Equity holders of the parent 418 7,635 
Minority interests 8 329 
Profit for the year 19 £426 £7,964 
Earnings per 1p share
(basic and diluted)
8 1.0p 17.4p 
Consolidated income statement
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 18
www.watfordleisureplc.com www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 19
Approved by the Board of Directors and authorised for issue on 13 November 2008 and signed on its behalf.
G M SIMPSON - Director
The notes on pages 25 to 44 form part of these financial statements.      
       
NOTES 2008 2007 
£000’s £000‘s
Non-current assets
Property, plant and equipment 1 g) & 9 13,981 11,854 
Intangible assets 1 h) & 10 8,148 8,523 
22,129 20,377 
Current assets
Inventories 1 i) & 12 137 157 
Trade and other receivables 13 5,051 5,720 
Cash and cash equivalents 2,039 570 
7,227 6,447 
Total assets 29,356 26,824 
Current liabilities
Bank overdraft - 2,461 
Interest bearing loans and other borrowings 14 8,856 2,158 
Trade and other payables 15 6,745 11,331 
Deferred revenue 16 4,751 2,520 
Current liabilities 20,352 18,470 
Non-current liabilities
Interest bearing loans and other borrowings 14 1,261 1,540 
Trade and other payables 15 1,670 1,163 
Deferred revenue 16 33 37 
Non-current liabilities 2,964 2,740 
Total liabilities 23,316 21,210 
Net Assets £6,040 £5,614 
Equity
Capital and reserves
Called up share capital 18 439 439 
Special reserve 19 10,651 10,651 
Profit and loss account 19 (4,820) (5,238)
Equity attributable to equity holders 
of the parent
6,270 5,852 
Minority interests (230) (238)
Total Equity £6,040 £5,614 
Consolidated balance sheet
as at 30 June 2008 WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 20
www.watfordleisureplc.com
ATTRIBUTABLE TO EqUITY hOLDERS OF ThE PARENT 
MINORITY 
INTEREST TOTAL
ShARE 
CAPITAL
SPECIAL 
RESERVE
RETAINED 
EARNINGS TOTAL
£000’s £000’s £000’s £000’s £000’s £000’s
Equity shareholders’ funds 
at 1 July 2006
439 10,651 (12,873) (1,783) (567) (2,350)
Profit for the year - - 7,635 7,635 329 7,964 
Equity shareholders’ funds 
at 30 June 2007
439 10,651 (5,238) 5,852 (238) 5,614 
Profit for the year - - 418 418 8 426 
Equity shareholders’ funds 
at 30 June 2008
439 10,651 (4,820) £6,270 (230) £6,040 
Consolidated statement of changes in equity 
for the two years ended 30 June 2008
       
The notes on pages 25 to 44 form part of these financial statements. www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 21
2008 2007 
£000’s £000‘s
Operating activities
Profit before taxation 426 7,964 
Amortisation of intangible assets 5,830 3,240 
Depreciation of property, plant and equipment 893 268 
Net profit on disposal of sundry non-current assets 2 9 
Profit on disposal of players' registrations (7,372) (7,957)
Premium received on grant of long lease (4,558) - 
Financing income (99) (93)
Financing costs 626 348 
Decrease / (increase) in inventories 20 (26)
(Increase) / decrease in receivables (1,193) 1,156 
(Decrease) / increase in payables and deferred income (276) 173 
Cash (absorbed by) / generated from operating activities (5,701) 5,082 
Cash flows from investing activities
Purchase of intangible assets (6,259) (5,457)
Purchase of property, plant and equipment (4,028) (2,917)
Proceeds from sale of intangible assets 9,479 3,668 
Proceeds from sale of property, plant and equipment 4,558 5 
Net cash generated by / (used in) 
investing activities
3,750 (4,701)
Cash flows from financing activities
Advances of debt 8,500 - 
Repayments of debt (2,081) (2,443)
Interest received 99 93 
Interest paid (637) (373)
Net cash generated by / (used in) 
financing activities
5,881 (2,723)
Net increase / (decrease) in cash 
and cash equivalents
3,930 (2,342)
Cash and cash equivalents at start of year (1,891) 451 
Cash and cash equivalents at end of year £2,039 £(1,891)
Cash and cash equivalents comprise
Cash and cash equivalents 2,039 570 
Bank overdraft - (2,461)
Total £2,039 £(1,891)
       
The notes on pages 25 to 44 form part of these financial statements.
Consolidated statement of cash flows 
for the year ended 30 June 2008 WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 22
www.watfordleisureplc.com
NOTES 2008 2007 
£000’s £000‘s
Non-current assets
Investments 11 11,771 11,755 
Current assets
Trade and other receivables 13 9 12  
Total assets 11,780 11,767 
Current liabilities
Trade and other payables 15 18 21 
Current liabilities 18 21 
Non-current liabilities
Interest bearing loans and other borrowings 14 592 592 
Trade and other payables 15 - - 
Non-current liabilities 592 592 
Total liabilities 610 613 
Net Assets £11,170 £11,154 
Equity
Capital and reserves
Called up share capital 18 439 439 
Special reserve 19 10,651 10,651 
Profit and loss account 19 80 64 
Total Equity £11,170 £11,154 
Approved by the Board of Directors and authorised for issue on 13 November 2008 and signed on its behalf.
          
G M SIMPSON - Director
       
The notes on pages 25 to 44 form part of these financial statements.
Company balance sheet
as at 30 June 2008 www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 23
ATTRIBUTABLE TO EqUITY hOLDERS OF ThE PARENT 
ShARE 
CAPITAL
SPECIAL 
RESERVE
RETAINED 
EARNINGS TOTAL
£000’s £000’s £000’s £000’s
Equity shareholders’ funds 
at 1 July 2006
439 10,651 66 11,156 
Profit for the year - - (2) (2)
Equity shareholders’ funds 
at 30 June 2007
439 10,651 64 11,154 
Profit for the year - - 16 16 
Equity shareholders’ funds 
at 30 June 2008
£439 £10,651 £80 £11,170 
Company statement of changes in equity 
for the two years ended 30 June 2008
The notes on pages 25 to 44 form part of these financial statements. WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 24
www.watfordleisureplc.com
2008 2007 
£000’s £000‘s
Operating activities
Profit before taxation 16 (2)
Financing income (239) (235) 
Financing costs 44 51
Cash absorbed by operations (179) (186)
Cash flow from financing activities
Advances from subsidiary - 410
Repayments of debt (16) (408) 
Interest received 242 223
Interest paid (47) (39) 
Net cash generated by financing activities 179 186 
Net increase in cash and cash equivalents - - 
Cash and cash equivalents at start of year - -
Cash and cash equivalents at end of year £Nil £Nil
Company statement of cash flows 
for the year ended 30 June 2008
The notes on pages 25 to 44 form part of these financial statements. 1   Accounting policies
Watford Leisure PLC is a company incorporated in the United Kingdom.  
The Group financial statements consolidate those of the company and its subsidiaries (together referred 
to as ‘the Group’). The Parent Company financial statements present information about the company as a 
separate entity and not about its Group.
Both the Parent Company and the Group financial statements have been prepared and approved by 
the Directors in accordance with International Financial Reporting Standards (IFRS’s) as adopted by 
the European Union (Adopted IFRS’s) and with those parts of the Companies Act 1985 applicable to 
companies reporting under IFRS. On publishing the Parent Company financial statements here together 
with the Group financial statements, the company is taking advantage of the exemption in section 230 of 
the Companies Act 1985 not to present its individual income statement  and related notes that form part of 
these approved financial statements. The Company’s profit for the year was £15,864 (2007 loss £1,997).
The accounting policies set out below have, unless otherwise stated, been applied consistently for both 
the Group and the Company to all periods presented in these Consolidated and Company financial 
statements. The financial statements have been prepared under the historical cost convention.
Judgements made by the Directors, in the application of these accounting policies, that have a significant 
effect on the financial statements and estimates with a significant risk of material adjustment in the next 
year are discussed in note 26.
a) Transition to Adopted IFRS’s
Both the Group and the Company have prepared their financial statements in accordance with Adopted 
IFRS for the first time and consequently both have applied IFRS 1 “First time Adoption of IFRS”. This 
requires the disclosure of the effect of adopting IFRS on figures previously reported under UK GAAP. At 
30 June 2006 and 30 June 2007 and for the financial periods ended on those dates, there is no significant 
financial effect of adopting IFRS on the previously reported UK GAAP figures. No reconciliation is 
therefore presented.
b) Going concern
The group has prepared financial projections for the period to June 2010 which show that it can through 
a combination of its operational cashflows, borrowing facilities and capital raising abilities meet all of its 
financial obligations.
The directors therefore consider it appropriate to prepare the financial statements on a going concern 
basis. The financial statements do not include any adjustments that would result should this not be the 
case.
c) Basis of consolidation
Subsidiaries are entities controlled by the Group. Control exists where the Group has the power, directly 
or indirectly, to govern the financial and operating polices of an entity so as to obtain benefits from its 
activities. In assessing control, potential voting rights that are currently exercisable or convertible are 
taken into account. The financial statements of subsidiaries are included in the Group financial statements 
from the date that control commences until the date that control ceases. Transactions between Group 
companies are eliminated on consolidation. 
Notes to the financial statements
for the year ended 30 June 2008
www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 25
Company statement of cash flows 
for the year ended 30 June 2008 Notes to the financial statements continued
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 26
www.watfordleisureplc.com
1   Accounting policies continued
d) Revenue
Revenue represents income arising from sales to third parties and excludes transfer fees receivable, 
which are dealt with in the profit on disposal of players’ registrations, and value added tax.
  i)  Season ticket and corporate hospitality revenue is recognised over the period of the football   
  season as home matches are played.
  ii)  Fixed elements of FA Premier League and Football League central  broadcasting contracts are  
  recognised over the period of the football season as league matches (home and away) are   
  played and Football League appearance fees are accounted for as earned.
 iii)  Sponsorship contracts are recognised over the duration of the contract, either on a 
  straight-line basis, or over the period of the football season, as appropriate, based on the terms  
  of contract. Catering revenues are recognised on an earned basis. Revenue from the sale   
  of the branded products is recognised at the point of despatch when significant risks and   
  rewards of ownership are deemed to have been transferred to the buyer.
e) Expenses
Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis 
over the lease term. Lease incentives are recognised in the income statement as an integral part of the 
total lease expense.
Net financing costs
Net financing costs comprise interest payable and interest receivable on funds invested.  Interest income 
and interest payable is recognised in the income statement as it accrues, using the effective interest 
method.
f) Taxation
Tax on the result for each period comprises current and deferred tax. Tax is recognised in the income 
statement except to the extent that it relates to items recognised directly in equity, in which case it is 
recognised in equity.
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or 
substantially enacted at the balance sheet date, and any adjustment to tax in respect of previous years.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities 
for financial reporting purposes and the amounts used for taxation purposes. The following temporary 
differences are not provided for: the initial recognition of assets or liabilities that affect neither accounting 
nor taxable profit other than in a business combination and differences relating to investments in 
subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount 
of deferred tax provided is based on the expected manner of realisation or settlement of the carrying 
amounts of assets and liabilities, using tax rates enacted or substantially enacted at the balance sheet 
date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profit will be 
available against which the asset can be utilised. g) Property, plant and equipment
 i) Owned assets
  Property, plant and equipment are stated at cost less accumulated depreciation and impairment  
  losses.
 ii)  Depreciation
  Depreciation is charged to the income statement, to write off the cost of property, plant and   
  equipment less estimated residual value, over their estimated  useful lives as follows:
  Freehold buildings  - over 25 years
  Plant and equipment  - 25% on reducing balance
  Motor vehicles  - 25% on reducing balance
  Stadium redevelopment - 10% on reducing balance
  Leasehold improvements  - over the shorter of the unexpired term of the lease and 20 years
  No depreciation is provided on freehold land or assets in the course of construction. The   
  residual value is reassessed annually.
  Interest incurred on borrowing to finance assets in the course of construction is capitalised.    
  Once construction has been completed interest is charged to the income statement. 
h) Intangible assets
 i) Acquired players’ registrations
  The costs associated with the acquisition of players’ registrations are initially recorded at their  
  fair value at the date of acquisition as intangible assets. These costs are fully amortised   
  over the period of the respective player contracts. 
  For the purposes of impairment reviews, acquired players’ registrations are classified as a   
  single cash-generating unit until the point at which it is made clear that the player is no   
  longer an active member of the playing squad. In these circumstances the carrying value of the  
  player’s registration is reviewed against a measurable net realisable value and any impairment  
  charged to cost of sales.
  Acquired players’ registrations are classified as ‘Assets held for sale’ on the balance sheet if, at  
  any time, it is considered that the carrying amount of a registration will be recovered principally  
  through a sale. The measurement of the registration is the lower of (a) fair value (less costs to  
  sell) and (b) carrying value. Amortisation of the asset is suspended at the time of reclassification,  
  although impairment charges still need to be made if applicable. 
 ii) Amortisation
  Amortisation is charged to cost of sales in the income statement on a straight-line basis over the  
  estimated useful lives unless such lives are indefinite. Intangible assets with an indefinite life are  
  systematically tested for impairment at each balance sheet date.
i) Inventories 
Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average 
principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing 
location and condition. Net realisable value is based on the estimated selling price in the ordinary course of 
business. Provision is made for obsolete, slow-moving or defective items where appropriate.
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 27
www.watfordleisureplc.com Notes to the financial statements continued
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 28
www.watfordleisureplc.com
1   Accounting policies continued
j) Signing on fees
Signing on fees are charged to the income statement on a straight-line basis over the period of the player’s 
contract. Prepayments / accruals arising at each period end are included within prepayments and accrued 
income or accruals within current assets or current liabilities, as appropriate. Where a player’s registration 
is transferred, any signing on fees payable in respect of future periods are charged against the profit / 
(loss) on disposal of players’ registrations in the period in which the disposal is recognised.
k) Deferred income
Deferred income comprises amounts received from capital grants, loan fees receivable, sponsorship and 
season ticket income. Capital grants are released to the income statement on a straight-line basis over the 
estimated useful lives of the assets to which they relate. Other deferred income is released to the income 
statement on a straight-line basis over the period to which it relates.
l) Classification of financial instrument issues by the Group 
Financial instruments issued by the Group are treated as equity (i.e. forming part of shareholders’ funds) 
only to the extent that they meet the following two conditions:
 
  a) they include no contractual obligations upon the Company (or Group as the case may be) to  
   deliver cash or other financial assets or to exchange financial assets or finance liabilities with  
   another party under conditions that are potentially unfavourable to the Company (or Group), and
  b) where the instrument will or may be settled in the Company’s own equity instruments, it is either  
   a non-derivative that includes no obligation to deliver a valuable number of the Company’s own  
   equity instruments or is a derivative that will be settled by the Company exchanging a fixed   
   amount of cash or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability.  
Where the instrument so classified takes the legal form of the Company’s own shares, the amounts 
presented in these financial statements for called-up share capital and share premium account exclude 
amounts in relation to those shares.
Where a financial instrument that contains both equity and financial liability components exists these 
components are separated and accounted for individually under the above policy.  The finance cost on the 
financial liability component is correspondingly higher over the life of the instrument.
Finance payments associated with financial liabilities are dealt with as part of finance expenses.  Finance 
payments associated with financial instruments that are classified in equity are dividends and are recorded 
directly in equity.
m) Financial assets
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits.  Bank overdrafts that are repayable 
on demand and form an integral part of the Group’s cash management are included as a component of 
cash and cash equivalents for the purpose only of the statement of cash flows.
Trade and other receivables 
Trade and other receivables are initially recorded at fair value and thereafter carried at fair value amount 
less any required allowances for uncollectable amounts. n) Financial liabilities
Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs.  
Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any 
difference between cost and redemption value being recognised in the income statement over the period 
of the borrowings on an effective interest basis. 
Trade and other payables
Trade payables are carried at amounts expected to be paid to counterparties.
o) Employee benefits
Obligations for contributions to defined contributions pension plans are recognised as an expense in the 
income statement as incurred.
p) Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing products or 
services (business segment) or in providing products or services within a particular economic environment 
(geographical segment) which is subject to risks and rewards that are different from those of the other 
segments. 
q) Provisions
A provision is recognised in the balance sheet when the Group has a present legal or constructive 
obligation as a result of a past event, and it is probable that an outflow of economic benefits will be 
required to settle the obligation. If the effect is material, provisions are determined by discounting the 
expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of 
money and, where appropriate, the risks specific to the liability.
r) Investments
Interests in subsidiary undertakings are valued at cost less impairment.
s) Pensions
The Group contributes to the Football League Limited Pension and Life Assurance Scheme for certain 
employees and also contributes to staff’s own pension plans, the assets of which are held separately from 
those of the Group in independently administered funds. The pension cost charges represent contributions 
payable by the Group during the year.
www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 29 Notes to the financial statements continued
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 30
www.watfordleisureplc.com
2  Revenue
  The Group has one main business segment, that of professional football operations. As a result, no     
  additional business segment information is required to be provided. It operates in one geographical     
  segment, the United Kingdom, and accordingly no additional geographical segment information is required    
  to be provided.
  Notwithstanding this, a voluntary analysis of the revenue streams is given below to assist with an     
  understanding of the business.  
   Revenue streams comprise:
  Matchday  -  season and matchday tickets and corporate hospitality income    
  Media   -  television and broadcasting income, including distributions from the FA Premier League    
       broadcasting agreements, Football League funding, cup competitions and local radio 
  Commercial    -  sponsorship income, merchandising, conference and banqueting and other sundry revenue
     
3     Other operating income
2008 2007 
£000’s £000‘s
Rent receivable 489 413 
Contributions to capital expenditure 1 1 
Release of capital grants 3 4 
Other 85 8 
£578 £426 
4 Financing
2008 2007 
£000’s £000‘s
Financing income:
Bank deposit interest £99 £93 
Financing costs:
Bank loan and overdraft 306 37 
Other interest 320 311 
£626 £348 
2008 2007
£000’s £000’s 
Matchday 4,767 6,478
Media 15,081 21,143
Commercial 2,515 2,291
£22,363 £29,912 www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 31
2008 2007 
£000’s £000‘s
This is stated after charging:
Amortisation of intangible assets 4,395 3,240 
Impairment of intangible assets (note 1 h i) 1,435 -
Depreciation of property, plant and equipment 893 268 
Profit on disposal of property, plant and equipment 2 9 
Inventories consumed 1,213 1,263 
Staff costs (note 6) 17,743 17,636 
Auditors’ remuneration
audit 35 37 
taxation 11 14 
remuneration - 10 
non-audit fees 11 21 
Operating leases - vehicles and equipment 32 51 
Operating leases - other 247 326 
On 20 September 2007 the Company granted the St. Pancras & Humanist Housing Association a 125 
year lease for a premium of £4,558,000. The St.Pancras & Humanist Housing Association will build and 
operate 164 key-worker housing units at the rear of the south (Rookery) stand and north-west corner of 
the stadium.
5     Profit / (loss) before taxation Notes to the financial statements continued
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 32
www.watfordleisureplc.com
2008 2007
£000’s £000‘s
Directors' remuneration 908 1,258 
Pension costs - 128 
Payment arising at the time of loss of office - 305 
£908 £1,691 
Highest paid director £494 £591 
Number of directors accruing benefits under
money purchase pension schemes
- 2
2008 2007 
£000’s £000‘s
Staff costs:
Wages and salaries 15,730 15,406 
Social security costs 1,865 2,140 
Other pension costs 148 90 
£17,743 £17,636 
The average monthly number of persons employed by the group was as follows :
2008 2007 
NUMBER NUMBER 
Players 50 47 
Coaching staff 34 23 
Commercial staff 30 40 
Part-time catering staff 53 73 
Administration 11 7 
Ground staff 7 7 
185  197 
In addition to the above the group employed an average of 212 (2007 - 215) part-time match day staff 
during the year. The only employees of the company during the year were the directors. 
Directors’ remuneration      
6   Employee information
In 2007 the amounts payable in respect of compensation reflected the Board’s gratitude for the support 
given to the Club by the directors concerned. 
      www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 33
2008 2007 
£000’s £000‘s
Profit for the financial year attributable to ordinary equity holders £418 £7,635 
Weighted average number of shares in issue 43,885,693 43,885,693 
Earnings per ordinary share 1.0p 17.4p 
8     Earnings per ordinary share 
       Earnings per ordinary share have been calculated as follows:
7 Taxation
 In view of the losses brought forward there is no liability to corporation tax and no liability is expected to  
 arise on the grant of the long lease.
 Tax losses of the Club at 30 June 2008 available for offset against future trading profits of that   
 subsidiary, subject to Inland Revenue acceptance, are in excess of £25,000,000. No charge to   
 corporation tax arises in the parent company due to the availability of group losses.
 Under the accounting policy no provision is required for deferred taxation and there is no   
 potential liability. Notes to the financial statements continued
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 34
www.watfordleisureplc.com
9 Property, plant and equipment - group                                                     
MOTOR 
VEhICLES,
EqUIPMENT, 
FIxTURES 
AND 
FITTINGS
ASSETS 
UNDER 
CONSTRUCTION
FREEhOLD
GROUND,
PREMISES AND
IMPROVEMENTS
LEASEhOLD 
PROPERTY  AND
IMPROVEMENTS TOTAL
£000’s £000’s £000’s £000’s £000’s
Cost:
At 1 July 2006 - 7,826 - 1,226 9,052 
Additions 1,600 971 751 784 4,106 
Disposals - - - (52) (52)
At 30 June 2007 1,600 8,797 751 1,958 13,106 
Additions - 2,289 262 471 3,022 
Transfer (1,600) 1,600 - - - 
Disposals - - - (29) (29)
At 30 June 2008 - 12,686 1,013 2,400 16,099 
Depreciation:
At 1 July 2006 - 136 - 886 1,022 
Charge for the year - 77 2 189 268 
Disposals - - - (38) (38)
At 30 June 2007 - 213 2 1,037 1,252 
Charge for the year - 328 232 333 893 
Disposals - - - (27) (27)
At 30 June 2008 - 541 234 1,343 2,118 
Net book value:
At 30 June 2008 £Nil £12,145 £779 £1,057 £13,981 
At 30 June 2007 £1,600 £8,584 £749 £921 £11,854 
At 30 June 2006 £Nil £7,690 £Nil £340 £8,030  www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 35
10 Intangible assets - group
POURING
RIGhTS
PLAYERS’
REGISTRATIONS TOTAL
£000’s £000’s £000’s
Cost:
At 1 July 2006 752 2,293 3,045 
Additions - 9,869 9,869 
Disposals - (183) (183)
At 1 July 2007 752 11,979 12,731 
Additions - 5,700 5,700 
Disposals - (887) (887)
At 30 June 2008 752 16,792 17,544 
Amortisation:
At 1 July 2006 332 723 1,055 
Charge for the year 420 2,820 3,240 
Disposals - (87) (87)
At 30 June 2007 752  3,456  4,208 
Charge for the year - 4,395 4,395 
Impairment 1,435 1,435 
Disposals - (642) (642)
At 30 June 2008 752 8,644 9,396 
Net book value:
At 30 June 2008 £Nil £8,148 £8,148 
At 30 June 2007 £Nil £8,523 £8,523 
At 30 June 2006 £420 £1,570 £1,990  Notes to the financial statements continued
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 36
www.watfordleisureplc.com
All companies are incorporated in England and Wales.
2008 2007 
£000’s £000‘s
Goods for resale £137 £157 
              GROUP
                    COMPANY
2008 2007 2008 2007
£000’s £000‘s £000’s £000‘s
Trade debtors 829 371 - - 
Transfer fees receivable 2,650 4,512 - - 
Other debtors 424 101 - - 
Prepayments and accrued income 1,148 736 9 12 
£5,051 £5,720 £9 £12 
12 Inventories - group
 
         The estimated replacement cost of inventories does not materially differ from their balance sheet value.
13 Trade and other receivables
 Other debtors includes £111,009 which falls due after more than one year (2007 - £100,826).   
ShARES IN
SUBSIDIARY
UNDERTAKINGS
LOAN TO
SUBSIDIARY
UNDERTAKING TOTAL 
£000’s £000’s £000’s 
Cost:
At 1 July 2007 11 11,744 11,755 
Movement - 16 16 
At 30 June 2008 £11 £11,760 £11,771 
SUBSIDIARIES NATURE OF BUSINESS
ORDINARY
ShARES
The Watford Association Football Club Limited Football club 96%
Watford Catering Limited Catering company 100%
Watford FC Regeneration Ltd. Property investment company (dormant)          100%
11 Investments 
   www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 37
14 Interest bearing loans and other borrowings
                   GROUP                     COMPANY
2008 2007 2008 2007 
£000’s £000‘s £000’s £000‘s
Current liabilities
Bank loans 7,118 110 - - 
Other loans 1,738 2,048 - - 
£8,856 £2,158 £Nil £Nil 
Non-current liabilities  
Convertible Loan Notes 2009 592 592 592 592 
Bank loans - 116 - - 
Other loans 669 832 - - 
£1,261 £1,540 £592 £592 
The maturity of total debt may be analysed as follows:
In one year or less 8,856 2,158 - - 
Between one and two years 1,261 708 592 592 
Between two and five years - 832 - - 
£10,117 £3,698 £592 £592 
The Convertible Loan Notes 2009 are issued to the Chairman, Mr G Simpson. The notes are unsecured 
and are convertible into Ordinary 1p shares at a price of 66.5p per share. The repayment date has been 
deferred until March 2010.  Interest of £43,727 (2007 - £51,438) was payable during the year. 
A bank loan of £7,000,000 was repaid on 8 August 2008. This was secured on Premier League Monies 
due in  August 2008. Other current loans include a loan of £1,500,000 which was repaid on 15 August 
2008 following receipt of £1,500,000 due from the sale of a player’s registration and £237,821 repayable to 
former directors.
Other non-current loans include a loan to the Club by Watford FC’s Community Sports & Education 
Trust of £669,000 which is secured by a legal charge over the Club’s stadium and is guaranteed by 
Watford Leisure PLC.  £46,683 (2007 - £43,768) interest was payable during the year. Notes to the financial statements continued
for the year ended 30 June 2008
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 38
www.watfordleisureplc.com
                 GROUP                     COMPANY
2008 2007 2008 2007
£000’s £000‘s £000’s £000‘s
Current liabilities
Trade creditors 1,566 2,803 - - 
Players' registration costs 3,014 4,090 - - 
Other taxes and social security 1,236 694 - - 
Accruals 929 3,744 18 21 
£6,745 £11,331 £18 £21 
Non-current liabilities
Players' registration costs 1,250 733 
- 
- 
Accruals 420 430 - - 
£1,670 £1,163 £Nil £Nil 
15 Trade and other payables www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 39
                  GROUP                    COMPANY
2008 2007 2008 2007
£000’s £000‘s £000’s £000‘s
Current liabilities
Deferred revenue 4,751 2,520 - - 
Non-current liabilities
Capital grants 30 33 
- 
- 
Contributions  to capital  expenditure 3 4 - - 
£33 £37 £Nil £Nil 
16 Deferred revenue
CAPITAL  GRANTS 
CONTRIBUTIONS  
TO CAPITAL  
ExPENDITURE TOTAL 
£000’s £000’s £’000’s 
Cost:
At 1 July 2007 33 4 37 
Credited to the income statement (3) (1) (4)
At 30 June 2008 £30 £3 £33 
Deferred revenue includes income, mainly from season ticket sales and loan fees, received in advance in 
respect of the 2008/09 season.
Capital grants comprise grants received (principally from the Football Stadia Improvement Fund, formerly 
the Football Trust) towards the costs of stadium re-development.     
   
         WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 40
www.watfordleisureplc.com
Notes to the financial statements continued
for the year ended 30 June 2008
17 Financial instruments
The Group holds and uses financial instruments to finance its operations and to manage its interest rate 
and liquidity risks. The Group primarily finances its operations using bank loans and other borrowing, 
cash and short-term deposits. 
The main risks arising from the Group’s financial instruments are credit risk, interest rate risk and liquidity 
risk. The Board reviews and agrees policies for managing each of these risks and they are summarised 
below. These policies have remained fundamentally unchanged throughout the year.
Credit risk
A stringent credit policy is in place and exposure to credit risk is monitored on a regular basis. Credit 
evaluations are performed on all customers requiring credit over a period of time.   
     
Interest rate risk
Surplus cash is placed on deposit for periods from overnight to monthly, depending on the forecast cash 
flow requirements and earns interest at rates prevailing in the money market.   
 
The interest rate risk profile of interest bearing financial assets was as follows:
The interest rate profile of interest bearing financial liabilities was as follows:
Floating rates varied between 1.5% above bank rate for the loan from Watford FC’s Community Sports & 
Education Trust and 2.25% above bank rate for the £7,000,000 bank loan.
2008 2007 
£000’s £000‘s
Fixed rate 1,663 3,650 
Floating rate 8,478 2,082 
£10,141 £5,732 
Fixed rate weighted average interest rate at 30 June 14.79% 7.41%
2008 2007 
£000’s £000‘s
Fixed rate 313 - 
Floating Rate 2,140 671
2,453 671  www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 41
 The maturity profile of interest-bearing financial liabilities was as follows:
 Fair values 
 The group is not exposed to foreign currency risks and therefore financial instruments are valued at cost as 
this is not deemed to be materially different from fair value.      
  
2008 2007 
£000’s £000‘s
In one year or less 2,352 570 
Between two and five years 101 101 
£2,453 £671 
Liquidity risk
The group’s policy is to maintain a balance of continuity of funding and flexibility through the use of 
overdrafts and loans. The annual group cash flow is cyclical in nature, with the majority of cash inflows 
being received prior to the start of the playing season. 
     
The group’s policy to help ensure the continuity of funding has been to spread the cash outflow / inflow from 
player trading through contract negotiation. The group also has taken use of discount financing over the 
course of the year.
The maturity profile of interest-bearing financial assets was as follows:     
   
2008 2007 
£000’s £000‘s
In one year or less 8,799 4,562
Between one and two years 609 887
Between two and five years 712 712
Over five years 31 41 
£10,151 £6,202  WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 42
www.watfordleisureplc.com
Notes to the financial statements continued
for the year ended 30 June 2008
2008 2007 
£000’s £000‘s
Authorised:
60,000,000 Ordinary shares of 1p each £600 £600 
Allotted, called up and fully paid:
43,885,693 Ordinary shares of 1p each £439 £439 
18 Share capital
19  Reserves
Company 
At 1 July 2007 10,651 64 
Profit for the year - 16 
At 30 June 2008 £10,651 £80 
SPECIAL 
RESERVE 
PROFIT AND 
LOSS ACCOUNT 
£000’s £000’s
Group
At 1 July 2007 10,651 (5,238)
Profit for the year - 418 
At 30 June 2008 £10,651 £(4,820)
Future losses of the company may be extinguished against the Special Reserve in accordance with the
provisions of High Court orders obtained on 5 May 2004 and 14 June 2006. www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 43
20   Operating lease liabilities
 The minimum lease payments under operating leases fall due as follows:     
     
 Operating lease payments represent primarily rentals payable by the Group for its administrative offices.   
 The main lease is for a term of five years with a break clause at the end of the third year.
21 Contingent liabilities and assets         
           
 a) Player transfer costs payable
 Under the terms of certain contracts with other football clubs in respect of player transfers, additional   
 amounts would become payable if certain specific performance conditions are met. The maximum that
  could be payable in respect of transfers to 30 June 2008 is £1,215,000. Since the year end and to the date  
 of approval of these financial statements none of this has crystallised.
 b) Signing-on fees
 The maximum possible commitments in respect of signing-on fees due to players under contracts at   
 the year end, which are payable on future dates specified in their contracts and not provided for the   
 accounts, amounted to £364,000 (2007 - £312,000)  
 c) Player transfer costs receivable
 At 30 June 2008 Watford Association Football Club has sums receivable from other clubs in respect of   
 players under contract, dependent upon the number of first team appearances. Due to the uncertainty   
 of receipt of these contingent assets it is not practical to disclose the amount likely to be received.
   
     
22 Employee benefit trust          
          
 During the year ended 30 June 2007 the company set up an employee benefit trust for the benefit of 
 employees. The group is deemed to have control of the assets and liabilities and income and costs of the   
 Trust which have therefore been included in the financial statements.
 
 During the year the trust settled two future contracts and effectively paid to the beneficiary the sum of   
 £500,000. The trust is now in the process of being wound up.      
  
  
23 Pension costs          
           
 The actuarial valuation of the Football League Limited Pension and Life Assurance Scheme at 1 April   
 2003 revealed that the Club’s share of the deficit in respect of the final salary section of the scheme was   
 £201,421. The pension cost for the period ended 30 June 2008 includes a charge of £9,214 in respect   
 of the increase in the company’s liability. The contribution is being paid by instalments of £1,573 per month  
 until April 2016. The next valuation is being prepared with a valuation date of 31 August 2008. 
 A replacement money purchase scheme was set up from 1 August 1999 and all current employer 
 contributions are paid into the new scheme.       
  
       
2008 2007 
£000’s £000‘s
Within one year 279 266 
Within two to five years 614 963 
£893 £1,229  WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 44
www.watfordleisureplc.com
Notes to the financial statements continued
for the year ended 30 June 2008
24 Capital commitments         
           
 The company has contracted for, but not provided for in the financial statements, capital expenditure totalling  
 £886,809, which includes the cost of the foundation to the south-west corner of Vicarage Road Stadium. 
25 Post balance sheet events        
           
 Subsequent to the year end various player registrations have been sold or terminated. In respect of  
 those it is estimated that net income of £3,067,000 will be reflected in the financial statements for the  
 next financial year. 
      
    
26  Accounting estimates and judgements
 Acquired Players’ registrations
 The costs associated with acquisition of players’ registrations are initially recorded at their fair value at  
 the date of acquisition. Part of the acquisition cost may be dependent upon the number of 
 appearances and the directors exercise their judgement on the probability of the deferred consideration 
 becoming payable and capitalising that cost as an intangible asset.
 In addition, in assessing whether the registration of any individual player requires reclassification to 
 “Assets held for sale” and, if so, whether any impairment charge is required, the directors will apply the 
 accounting policy as detailed in note 1h.
 Investments
 The interest in subsidiary undertakings in the Company balance sheet is valued at cost less impairment. 
 In assessing whether or not an impairment charge is required, the directors consider whether the 
 carrying value of the investment is permanently impaired. If in their opinion the reduction in value is of a  
 temporary nature, then no impairment charge is recognised.   
 
        
27 Related party transactions        
           
 G M Simpson and M A Ashton are trustees of Watford FC’s Community Sports & Education Trust, a 
 charitable company. At 30 June 2008 £35,580 was owed to the Trust (2007 - £20,911 owing to the  
 group). 
 Winning Retail Consultancy, a party connected to director, M A Ashton, invoiced £23,095 during the year, in  
 respect of services provided. 
 Interest receivable amounting to £238,586 was charged by the company to the Club during the year 
 (2007 - £234,934).         
      
Directors      G M Simpson - Chairman 
       M A Ashton - Chief Executive
       A S Wilson
  
Company Secretary     P J Wastall
Registered office    Vicarage Road Stadium 
       Watford 
       Hertfordshire WD18 0ER
Registered number     3335610 
  
Nominated adviser     Strand Partners Limited 
       26 Mount Row
      London W1K 3SQ
Broker      Dowgate Capital Stockbrokers Limited
       Talisman House 
       Jubilee Walk 
       Three Bridges 
       Crawley 
       West Sussex RH10 1LQ 
  
Auditors      Chantrey Vellacott DFK LLP 
       Russell Square House 
       10-12 Russell Square
       London 
       WC1B 5LF
  
Bankers      Barclays Bank plc 
       32 Clarendon Road 
       Watford 
       Hertfordshire WD17 1BZ 
  
Registrar      Capita Registrars Limited 
       Northern House
       Woodsome Park
       Fenay Bridge
       Huddersfield
      West Yorkshire HD8 0LA
  
Website address     www.watfordleisureplc.com
Company information
www.watfordleisureplc.com
WATFORD LEISURE PLC
REPORT AND FINANCIAL STATEMENTS 2008 45 Watford Leisure PLC
OFFICE
Unit 3 Wolsey Business Park 
Tolpits Lane Watford 
Herts WD18 9BL
CONTACT
T 0845 442 1881
F 01923 496 001 
www.watfordleisureplc.com
STADIUM
Vicarage Road Stadium 
Watford Herts  
WD18 0ER
OFFICIAL CLUB SPONSOR