WATFORD made a £5.6 million loss last season as they picked up the cost of relegation from the Premiership, and made an immediate and financial commitment for a speedy return to the top flight.

While Watford's new shares, floated on the Alternative Investment Market, remain at their issue price of 1p, chief executive Tim Shaw pointed out the accounts only cover the period up to June.

"Once again we are investing heavily in a bid for the Premiership," said Shaw this week.

"Last year represented an attempt by the club to regain their position in the Premier League by buying players such as Baardsen, Nielsen and Venazza, and we have increased our cost base."

Asked about the £5.6 million loss, he added: "While there is a difference between a paper loss as opposed to cash, the money that has gone out has either been funded by investor contribution having raised over £10 million over the last two years and parachute payments, etc."

Revenue dropped last season, in comparison with the figures covering the year in the Premiership. The wage bill rose 14 per cent to £8.2 million, the substantial proportion of total operating costs of £11.3 million. Revenues, including the television money, were down last year by 40 per cent on the Premiership campaign, at £9.9 million.

Watford's figures for the current season are likely to exceed the previous loss as the board continues to bid for the top flight.

October 13, 2001 0:20