Interim Results

John Lewis Of Hungerford PLC
15 May 2001


JOHN LEWIS OF HUNGERFORD PLC

INTERIM STATEMENT FOR THE SIX MONTHS ENDED

28 FEBRUARY 2001



HIGHLIGHTS


        *      Revenues at £1,350,000 (2000 - £1,336,000) depressed by London
        concession relocation and exceptional staff shortages in some retail
        outlets.

        *      Loss/Profit on ordinary activities before and after taxation £
        42,000 loss (2000 - £26,000 profit).

        *      Net cash inflows from operating activities £133,000 (2000 - £
        79,000).

        *      Unit sales growth over last year same period: Kitchens - 11%,
        Furniture +8%.

        *      Strong sales from new Just Doors(R) division.

        *      Significant investment in new manufacturing equipment.

        *      Three new retail outlets opened.





        CHAIRMANS STATEMENT

Review of Operations

The last six months has been a period of intense activity. Whilst trading
results for the period are disappointing, they do not reflect the benefits of
recent changes in the Company as set out below.

During the period our important London concession at Liberty, Regent Street
was relocated to Jerry's Home Store in the Fulham Road. This new location,
with window displays onto the Fulham Road, greatly enhances our exposure in
London. Further, it has enabled us to display for the first time our full
range of new products including the 'Shaker' style kitchen and FusionO
worktops. Thus whilst this relocation has had a negative impact on sales over
the last few months, it enhances our potential for future sales growth in and
around London.

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.

We will be adding to our London representation later this year when a Company
leased showroom opens in Muswell Hill. After the opening of this outlet, the
Company will be retailing in the UK through a total of four Company leased
showrooms and six concessions.

During the six month period to February 2001 sales were negatively affected by
a shortage of sales designers in some concessions. These positions have now
been filled but sales from all concessions declined 26% against the prior year
same period. In marked contrast, comparative sales through Company leased
showrooms grew an impressive 20%. Sales from the new Just Doors(R) division
continue to build well and it is expected that these products will become a
significant proportion of the Company's future sales mix. Finally, the new
sales arrangements in the Netherlands have been completed and volumes have
increased some 30% against the same period last year. The Company now supplies
this market through a distributorship on an 'own label ex-works' basis billing
in pounds sterling.

In the last few months the Company has made capital expenditures of £210,000
mainly in advanced automated production equipment for our factory at Wantage.
This significantly increases capacity and reduces dependence upon skilled
labour. The cost of this investment has been funded from operating cash flow.

Our present focus is to maximise the benefits of additional outlets and the
investment in new production equipment through increased sales.

Summary of Financial Results

Turnover for the period was £1,350,000 against £1,336,000 in the comparable
period last year.

Losses before and after tax were £42,000 (2000 - profit £26,000).

The Balance Sheet shows cash at £95,000 with no debt other than trade related.
The Company has in place overdraft facilities amounting to £450,000.

Outlook for the Future

The Company is well positioned to grow sales over the coming year.

The potential for a rapid downturn in the UK economy, however, remains. If
this materialises it is likely to negatively impact the Company's sales and
profits in the short term.

John Lewis

Chairman

15 May 2001



PROFIT AND LOSS ACCOUNT

FOR THE SIX MONTHS ENDED 28 FEBRUARY 2001


                                                  Unaudited  Unaudited  Audited
                                                   6 months   6 months       12
                                                                         months
                                                      ended      ended    ended
                                                         28         29       31
                                                   February   February   August
                                                       2001       2000     2000
                                                       £000       £000     £000

Turnover                                              1,350      1,336    2,914
Costs of sales                                          641        555    1,242
                                                      _____      _____    _____
Gross profit                                            709        781    1,672
Distribution costs                                      155        237      529
Administration costs - normal                           597        505      984
Administration costs - exceptional                        -         10        3
                                                      _____      _____    _____
Operating (loss)/profit                                (43)         29      156
Interest receivable                                       1          2        3
Interest payable                                          -        (5)      (7)
                                                      _____      _____    _____
(Loss)/profit on ordinary activities before
taxation                                               (42)         26      152
Taxation                                                  -          -        -
                                                      _____      _____    _____
(Loss)/profit on ordinary activities after
taxation                                               (42)         26      152
Dividends                                                 -          -       50
                                                      _____      _____    _____
Retained (loss)/profit                                 (42)         26      102
                                                       ====       ====     ====
Earnings/(loss) per share                           (0.03)p      0.02p    0.10p
                                                      =====       ====     ====



BALANCE SHEET

AS AT 28 FEBRUARY 2001


                                     Unaudited       Unaudited       Audited
                                    28 February     29 February     31 August
                                        2001           2000           2000
                                     £000    £000    £000    £000   £000   £000
Fixed assets
Intangible assets                      33              17             26
Tangible assets                     1,873           1,711          1,713
                                    _____           _____          _____
                                            1,906           1,728         1,739
Current assets
Stocks                                176             206            196
Debtors                               106             149             68
Cash at bank and in hand               95             110            154
                                    _____           _____          _____
                                      377             465            418
Creditors: amounts falling due
within one year

                                      826             770            658
                                    _____           _____          _____
Net current liabilities                     (449)           (305)         (240)
                                           ______           _____         _____
Total assets less current
liabilities                                 1,457           1,423         1,499
                                            =====            ====          ====
Capital and Reserves
Called up share capital                       149             149           149
Other reserves                                  1               1             1
Share premium account                         825             825           825
Profit and Loss account                       482             448           524
                                           ______           _____          ____
Shareholders funds - all equity
interests                                   1,457           1,423         1,499
                                            =====           =====          ====



CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 28 FEBRUARY 2001
                                                Unaudited   Unaudited   Audited
                                                 6 months    6 months 12 months
                                                    ended       ended     ended
                                              28 February 29 February 31 August
                                                     2001        2000      2000
                                                     £000        £000      £000

Operating (loss)/profit                              (43)          26       156
Depreciation                                           44          47        94
Profit on disposal of tangible fixed assets
                                                      (1)           -       (5)
Decrease/(increase) in Stock                           20        (54)      (44)
Decrease/(increase) in Debtors                       (38)          24        18
Increase in Creditors                                 151          36        86
                                                    _____       _____     _____
Net cash inflow from operating activities
                                                      133          79       305
Returns on investment and servicing of
finance                                                 1           -       (4)
Corporation tax                                         -           -        89
Capital expenditure                                 (210)        (12)      (65)
Equity dividends paid                                (18)           -         -
                                                    _____       _____    ______
Increase/(Decrease) in cash                          (94)          67       325
                                                    =====       =====     =====

Notes:


        1.     The interim accounts, which are unaudited, have been prepared
        under the historical cost convention using the accounting policies set
        out in the accounts for the year ended 31 August 2000.

        2.     The loss per share is calculated on the loss of £42,000 after
        taxation and on the basis of 148,745,519 shares in issue. The earnings
        per share for the 6 months ended 29 February 2000 is calculated on the
        profit after taxation of £26,000 and on the basis of 148,745,519
        shares in issue. The earnings per share for the year ended 31 August
        2000 is calculated on the profit after taxation of £152,000 and on the
        basis of 148,745,519 shares in issue.

        3.     2001 Interim Accounts. Copies of the 2001 interim accounts will
        be sent to shareholders in due course.

        4.     Copies of this announcement will be available from the
        Nominated Adviser: Smith & Williamson, No 1 Riding House Street,
        London, W1A 3AS for one month from the date of this announcement.



        REVIEW REPORT BY THE AUDITORS



        To John Lewis of Hungerford plc

        Introduction

We have been instructed by the company to review the financial information set
out on pages 4 to 6 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein , is
the responsibility of, and has been approved by the directors. The Listing
Rules of the London Stock Exchange (Alternative Investment Market) require
that the accounting policies and presentation applied to the interim figures
should be consistent with those applied in preparing the preceding annual
accounts except where any changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in bulletin 1999
/4 issued by the Auditing Practices Board. A review consists principally of
making enquiries of management and applying analytical procedures to the
financial information and underlying financial data and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 28 February 2001.



Hill Wooldridge & Co

Registered Auditor

Chartered Accountants

15 May 2001



-ends-