Final Results

John Lewis Of Hungerford PLC
21 December 2001


John Lewis of Hungerford plc ('the Company') - Preliminary Results

Company Profile

John Lewis of Hungerford plc designs, manufactures and retails kitchens, home
office and free standing furniture direct to the public from its own showrooms
and Company managed concessions throughout the United Kingdom. The Company
also operates a United Kingdom mail order business for replacement kitchen
cabinet doors and supplies selected non-branded products to the Netherlands
through a distributorship.


Manufacturing and administration is carried out from a purpose built factory
at Wantage, Oxfordshire constructed in 1998. The Company has recently made
major investments in advanced automated manufacturing equipment.


Founded in 1972, the Company is committed to the pursuit of excellence in
every aspect of its business and endeavours to maintain long-term
relationships with its staff, customers and suppliers. A policy of 'keep it
simple' links with an innovative and a fresh approach to its business.
Significant United Kingdom brand recognition has been achieved through
long-term sustained advertising in quality magazines.


The Company's core product line is the 'Artisan(R)' range of kitchens and
furniture. In recent years the Company has expanded its line of branded
products to include the more contemporary 'Shaker' style kitchens and the Just
Doors(R) direct mail business for replacement kitchen cabinet doors.


The Company's growth strategy remains focused on improving the visibility and
availability of its products in the United Kingdom by increasing the number of
Company owned retail showrooms and selected concession sites, and by
developing its mail order business.


For more information about the Company and its products visit our web sites:


www.john-lewis.co.uk

www.the-home-office.co.uk

www.justdoors.co.uk


2001 Highlights

* Sales increased 4% over previous year.

* Strong second half year trading. Full year profits before taxation £122,550
  (2000 - £151,780) but second half-year profits increase 31% over last year
  same period.

* Net cash inflows from operating activities £347,309 (2000 - £304,983).

* Dividend increased 10%.
* Significant capital investment in advanced automated manufacturing equipment
  completed.

* Three new stores opened and a further store under construction.

Chairman's Statement

Results


Sales for the year ended 31 August 2001 increased by 4.4% to £3,042,201
compared to £2,913,870 for the previous year. Profits before tax for the same
period were £122,550 compared to £151,780 for the previous year. Gross margins
remained unchanged over the prior year at 57.4%. Unit sales of kitchens and
furniture were broadly flat compared to the prior year.


The profit on ordinary activities after taxation amounted to £84,368 (2000 - £
152,043).


Net cash outflows before financing were £84,037 (2000 inflows - £325,325).


Basic earnings per share were 0.06p (2000 - 0.10p).


In view of improved trading in the second half year to 31 August 2001 and
satisfactory trading in the first quarter of the year to 31 August 2002, an
increase in dividend of approximately 10% to 0.037p per share is being
proposed by the Board (2000 - 0.034p). Subject to shareholders approval, the
dividend will be payable to holders of ordinary shares on the register at 4
January 2002 and will be paid on 6 February 2002. The Company will be
distributing profit-related pay in respect of the year's results (which has
been charged to reported profits) to eligible staff amounting to £18,644 (2000
- £17,486).


Trading Review


After a weak first half trading mainly due to staff vacancies in some outlets
and the relocation of our key London concession, the Company's trading
performance was satisfactory. During this latter period sales grew by 7% and
profits before tax increased 31%.


As reported previously the Company's focus remains improving the visibility
and availability of its products in the United Kingdom by increasing the
number of Company owned retail showrooms and selected concession sites, and by
developing its mail order business.


Three new outlets were opened during the year including the relocation of our
important central London concession.


In December 2000 our concession at Liberty, Regent Street successfully
relocated to Jerry's Home Store in the Fulham Road. This new concession has
performed well and increased space is being taken in the current financial
year to enable the Company to display its full line of products including
freestanding furniture. In October 2000 a new retail concession outlet was
opened in Winchester, Hampshire and in April 2001 a new Company leased
showroom was opened in Harrogate, Yorkshire.


A further Company leased showroom in Muswell Hill, London is expected to open
around Christmas 2001. The Company continues to look selectively at new sites.


The direct mail order division Just Doors(R) launched in 1999 has continued to
perform well with sales growing 88% in the period.


The distribution arrangement in the Netherlands market continues to generate a
useful level of sales.


Staff vacancies, which as reported in our Interim Statements adversely
affected sales in the first half, have to a large extent been resolved.
Recruitment and retention of quality staff will however remain an ongoing
challenge as the number of Company outlets increases.


New Board Appointment


On 8 October 2001 the Company announced the appointment of Christopher Rocker
(44) to the Board as Sales Director. Chris joined the Company in June 2000 and
brings to the business a wealth of industry experience. His appointment
significantly strengthens our management team and fills an important gap in
the day to day running of the business. The benefits of Chris's appointment
are already showing through in all aspects of our selling operations.


Financial Review


The Company continues to have a very cash generative business model.


Net Cash Outflows amounted to £84,037. The Company's Balance Sheet is
materially debt free (other than trade related). Standby-secured overdraft
facilities are in place amounting to £400,000.


The proposed dividend of 0.037p per share is covered 2.2 times by pre-tax
profits.


During the year the Company incurred capital expenditures of £387,000. This
was funded from operating cash flows and includes a planned investment in
automated manufacturing equipment amounting to some £170,000 which is now
fully commissioned. Not only does this latter investment significantly
increase productivity and manufacturing capacity but it also enables the
Company to focus the efforts of its skilled workforce on those aspects of the
manufacturing process which add value.


Outlook


Trading during the first quarter of the financial year to 31 August 2002 has
been strong with a substantial increase in like for like sales.


Current uncertainties in the world economy together with an expected downturn
in the UK economy may make it difficult to maintain the sales momentum of the
first quarter. A severe economic downturn in the UK is likely to negatively
impact the Company's sales and profits in the current year.


Nothwithstanding the above your Board believes that the Company now has in
place all the elements required to significantly grow sales and profits in the
coming years.




John Lewis

Chairman

21 December 2001





Profit and Loss Account for the year ended 31 August 2001

                                                 2001                      2000
                                      £             £           £             £

Turnover                                   3,042,201                 2,913,870

Cost of sales                             (1,296,033)               (1,241,910)
                                        -------------             -------------

Gross profit                              1,746,168                  1,671,960

Distribution costs                          (508,328)                 (529,353)
Administrative expenses
- normal                     1,116,744                    983,482
Administrative expenses
- exceptional item                   -                      3,364
                          -------------               -----------
Total administrative                      (1,116,744)                 (986,846)
expenses
                                        -------------               -----------
Operating profit                             121,096                   155,761

Other income                                   2,119                     3,071
Interest payable and
similar charges                                 (665)                   (7,052)
                                        -------------               -----------
Profit on ordinary
activities before                            122,550                   151,780
taxation

Tax on profit on
ordinary activities                          (38,182)                      263
                                        -------------              ------------
Profit on ordinary
activities after taxation                     84,368                    152,043

Dividends                                    (55,000)                  (50,000)
                                         ------------               -----------
Retained profit for
the financial year                            29,368                   102,043
                                              =======                   =======
Earnings per share
Basic                                           0.06p                     0.10p
Fully diluted                                   0.06p                     0.10p



Profit and Loss Account for the year ended 31 August 2001 (continued)

Statement of Reserves
                                                            2001           2000
                                                               £              £

Retained profit brought forward                          523,794        421,751
Retained profit for the financial year                    29,368        102,043
                                                      ----------     ----------
Retained profit carried forward                          553,162        523,794
                                                          ======         ======


The profit and loss account has been prepared on the basis that all operations
are continuing operations.


There are no recognised gains and losses other than those passing through the
profit and loss account.


Balance Sheet as at 31 August 2001
                                               2001                        2000
                                    £             £             £             £
Fixed assets
Intangible assets                           32,087                      25,780
Tangible assets                          1,978,708                   1,713,397
                                      -------------               -------------
                                         2,010,795                   1,739,177
Current assets
Stocks                       223,564                     195,876
Debtors                       66,524                      67,766
Cash at bank and in hand      84,855                     153,840
                         ------------               -------------
                             374,943                     417,482
Creditors: amounts
falling due
within one year             (821,352)                   (657,928)
                         ------------               -------------
Net current liabilities                   (446,409)                   (240,446)
                                      -------------               -------------
Total assets less
current
liabilities                              1,564,386                   1,498,731

Provisions for
liabilities and
charges                                    (36,287)                          -
                                       ------------               -------------
Total net assets                         1,528,099                   1,498,731
                                            =======                    ========
Capital and reserves
Called up share capital                    148,745                     148,745
Share premium account                      824,771                     824,771
Other reserves                               1,421                       1,421
Profit and loss account                    553,162                     523,794
                                      -------------               -------------
Shareholders' funds -
all equity
interests                                1,528,099                   1,498,731
                                            =======                     =======



The financial statements were approved by the Board on 21 December 2001.

John L. Lewis                Richard D Worthington FCA
Director                     Director


Cash Flow Statement for the year ended 31 August 2001

                                                 2001                      2000
                                       £            £            £            £
Net cash inflow from
operating activities                         347,309                   304,983

Returns on investments and
servicing of finance
Interest received                 2,119                     3,071
Interst paid                       (665)                   (7,052)
                            ------------              ------------
Net cash inflow/(outflow)
from returns on
investments
and servicing of finance                       1,454                    (3,981)

Corporation tax                               (1,894)                   89,228

Capital expenditure
Payments to acquire
intangible
fixed assets                     (8,599)                   (8,778)
Payments to acquire
tangible
fixed assets                   (387,300)                  (65,059)
Receipts from sales of
tangible
fixed assets                     14,993                     8,932
                           -------------              ------------
Net cash outflow from
capital
expenditure                                 (380,906)                  (64,905)

Equity dividends paid                        (50,000)                        -
                                         ------------              ------------
Net cash (outflow)/inflow
before financing                             (84,037)                  325,325

Net cash inflow from                               -                         -
financing
                                         ------------              ------------
(Decrease)/increase in                      (84,037)                   325,325
cash
                                              =======                   =======


1. Preliminary Results
   The preliminary results have been extracted from the Company's audited
   accounts which have been approved and signed by the directors and auditors,
   but have not yet been delivered to the Registrar of Companies. The audited
   accounts have been prepared under the historical cost convention using the
   accounting policies set out in the Company's 2000 statutory financial
   statements.

2. Reconciliation of Movement in Shareholders' funds

                                                           2001            2000
                                                              £               £

   Profit for the financial year                        84,368         152,043
   Dividends                                           (55,000)        (50,000)
                                                   ------------   -------------

   Net addition to shareholders' funds                  29,368         102,043
   Opening shareholders' funds                       1,498,731       1,396,688
                                                  -------------  --------------
   Closing shareholders' funds                       1,528,099       1,498,731
                                                        =======        ========

3. Earnings per Share

   Earnings per ordinary share is calculated as
   follows:
                                                           2001            2000
   Basic
   Profit attributable to ordinary shareholders         £84,368        £152,043
   Weighted average number of ordinary shares in
   issue                                            148,745,519     148,745,519
   Earnings per ordinary share                            0.06p           0.10p
                                                      =========       =========
   Fully diluted
   Profit attributable to ordinary shareholders         £84,368        £152,043
   Weighted average number of ordinary shares in
   issue                                            148,745,519     148,745,519
   Earnings per ordinary share                            0.06p           0.10p
                                                      =========       =========
   Weighted average number of ordinary shares in
   issue - basic calculation                        148,745,519     148,745,519
   Number of shares deemed to have been issued
   for no consideration in respect of share                   -               -
   options
                                                 -------------- ---------------
   - fully diluted calculation                      148,745,519     148,745,519
                                                      =========       =========
4. 2001 Report and Accounts
   Copies of the 2001 report and accounts will be sent to shareholders in due
   course. Further copies will be available from the Company's nominated
   adviser, Smith & Williamson Corporate Finance, No 1 Riding House Street,
   London, W1A 3AS, free of charge, for one month from the date of this
   announcement.

5. Copy of Announcement
   A copy of this announcement will be available from the nominated adviser,
   Smith & Williamson Corporate Finance, No 1 Riding House Street, London, W1A
   3AS, for one month from the date of this announcement.



-ends-