Watford Leisure, the AIM-listed owner of Watford Football Club, has reported a sharp decline in losses for the second half of 2010.

Pre-tax losses for the six months to 31 December 2010 were £2.5m - compared with £172,000 the year before.

The club failed to sell any players during the period, with club chair Graham Taylor admitting that selling off its key players is a "key part of the model that underpins our stated aim to be a sustainable business".

The Championship club has also struggled on the field, resulting in both match day ticket income and season ticket sales falling from the year before.