IN this week's edition of the Watford Observer, Graham Simpson has finally explained why the now famous "hole" appeared in the club's accounts, but having buried the past, the Hornets chairman feels he is on far firmer ground being "bullish" about the club's future, but warns the manager's funds for the playing staff is likely to be similar to the tight budget of 2004 and that the club may not break even by 2006.

"It will depend on a number of elements which will go into this whether we will or not break even. We hope to break even by 2006. I am a positive, optimistic person and if everything goes according to plan, we have a great chance of doing this.

"My biggest hope and I cannot guarantee it, is that I don't have to go out again to raise money because we got our calculations wrong," he admitted.

"We are going to go out again in the not too distant future with the concept of raising money but this money is going to develop the stadium, build a new East (Main) Stand and take the club forward and hopefully they would like to be part of that.

"But when you ask when we are going to break even; in all honesty, it is a difficult question for me to answer because you can write this down and, in a year or two year's time, you can say we said this or that. I would love to be able to achieve it. It will be very difficult but I believe all the positive moves that are coming through and are going to come through in the next few months, we have a wonderful chance to break even."

See this week's edition of the Watford Observer for Simpson's full interview.