TIDMWFC 
 
RNS Number : 2712D 
Watford Leisure PLC 
30 November 2009 
 

Watford Leisure PLC 
("Watford Leisure" or the "Company") 
 
 
Related Party Loan and Update on Financial Position 
 
 
Watford Leisure announces that it has increased its borrowings from Valley Grown 
Salads Limited ("VGS"). A related party loan facility agreed with Valley Grown 
Salads ("VGS"), under which GBP2.63 million was advanced to the Company, was 
announced on 11 September 2009. This facility ("VGS Facility"), which is secured 
against the Vicarage Road Stadium ("Stadium"), is repayable on demand and 
accrues interest monthly at a rate of 3.5 per cent. over Barclays Base Rate. 
 
 
On 26 November 2009, VGS lent a further GBP1 million to the Company (the 
"November Loan"), as a further advance under the VGS Facility. In addition, and 
as a condition to the November Loan, the interest rate payable for the VGS 
Facility was increased to 4.5 per cent. over Barclays Base Rate and the loan of 
GBP1.25 million previously advanced by Giacomo Russo to the Company in August 
and repayable in three instalments from funds due from the proceeds of player 
transfers (the "August Loan"), is being repaid to Giacomo Russo and refinanced 
by way of a further drawdown from VGS by Watford Leisure under the existing 
secured facility.As a result, VGS will have the principal amount of GBP4.88 
million in loans (in aggregate) outstanding and secured against the Stadium. 
 
 
The independent directors of the Company (that is, excluding Vincenzo and 
Giacomo Russo, who jointly control VGS, and Robin Williams) consider, having 
consulted with Strand Hanson Limited, that the terms of the November Loan and 
the terms of the refinancing of the August Loan are fair and reasonable insofar 
as the Company's shareholders are concerned. 
 
 
The board of Watford Leisure ("Board") estimates that the Company requires a 
further GBP5.5 million to cover projected cash flow requirements for the period 
to 30 June 2010. The Board has had no success to date in securing agreement 
between the major shareholders of the Company in relation to a possible equity 
fundraising although the Board believes that options which it has proposed are 
still being actively considered. The Board continues to consider all fundraising 
options open to the Company. 
 
 
The November Loan will only be sufficient to cover the Company's cash 
requirements until 22 December 2009. In the event that further funding is not 
available to the Club before 22 December 2009, then the Board would seek a 
suspension of trading in Watford Leisure's shares on AIM pending clarification 
of its financial position. Further announcements will be made in due course. 
 
 
Enquiries: 
Watford Leisure PLC 
Tel:  01923 496 000 
Jimmy Russo, Chairman 
Julian Winter, Chief Executive Officer 
 
 
Strand Hanson Limited 
Tel:  020 7409 3494 
Rory Murphy 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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