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Watford have provisions in place for the LNOC money - whether the outcome is good or bad
Watford's head of finance Katie Wareham has confirmed the club have provisions in this year's accounts for a £900,000 loan a company claims it is owed.
The Hornets are currently appealing a High Court decision relating to a £900,000 loan from finance company LNOC.
The Watford Observer reported almost three weeks ago that the club had provisions in this year's accounts for the £900,000 and that it would not have a negative impact of the Golden Boys' finances.
And at today's AGM of parent company Watford Association Football Club Limited at Vicarage Road, Wareham confirmed the club had 'a credit provision and debt provision' for the money in the accounts for the year ending June 2014.
Chief executive Scott Duxbury was also asked if he could "assure" the shareholders in attendance that the Red Lion pub in Vicarage Road would not be given to controversial former owner Laurence Bassini. Duxbury stated he couldn't provide that guarantee.
The Red Lion is still under the ownership of Watford FC but we understand they have a legal obligation to release the building to Bassini as part of the takeover agreement from the summer of 2012.
Wareham and Duxbury were responding to questions submitted after the formal business of the AGM, which lasted less than ten minutes and was held in front of 11 shareholders.
Duxbury and Wareham were joined on the top table by non-executive director Stuart Timperley, company secretary Peter Wastall and Paul Windmill, who works for auditors Myers Clark.
One of the questions included praise about the performance of the commercial side of the business, as the annual accounts for the year ending June 2013 showed the department raised £6.09m more than the previous 12-month period.
Timperley said: "There are some good things happening on the commercial side of the club so it is nice you have given me the opportunity to say that.
"I think Scott Duxbury and his team have done very well. I would also like to include the operations side [of the business] under Glyn Evans and finance under Katie Wareham. There is a really good team of people here now."
"It is very nice to see the club really progressing," he added.
Turnover for the Hornets' parent company increased by £6.95m from £11.18m to £18.13m during the year ending June 2013. Just under £2.58m of that sum was due to participation in the Championship Play-Offs and the rest, the accounts stated, was down to "improved commercial performance of the business".
Duxbury was asked if he could expand on where the extra £4.37m came from. The chief executive explained he couldn't go into exact detail as the information was commercially sensitive but did say the increase of more than £4m was due to several commercial deals rather than just one and that some of the agreements include performance-related incentives.
Timperley was nominated chairman of the meeting in the absence of company chairman Raffaele Riva. Technical director Gian Luca Nani, non-executive director David Fransen and Riva sent their apologies for being unable to attend the meeting.
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