Interim Results

John Lewis Of Hungerford PLC
14 May 2003

JOHN LEWIS OF HUNGERFORD PLC





HIGHLIGHTS

•      Revenues increased 17% to £1,777,000 (2002 - £1,512,000).

•      Operating profit £173,000 (2002 - £143,000 loss).

•      Net cash inflow from operating activities £122,000 (2002 - £126,000

       outflow).

•      Unit sales volume growth over last year same period: Kitchens +7%:

       Furniture +13%.

•      New showroom opened in Bristol.





CHAIRMAN'S STATEMENT

Review of Operations

I am pleased to report on a successful six months trading. Strong order input at
the commencement of the current financial year (which we indicated in the Annual
Report for the year to 31 August 2002) continued throughout the period with
record order intake being achieved during the January 2003 promotion.

Kitchen and Furniture sales revenues grew by 20% and 8% respectively against the
same period last year. Results from our mail order division, Just Doors, have
been disappointing with sales declining 7% mainly as a result of exceptionally
heavy advertising by one competitor. We believe that this competitor business
has now ceased trading.

In December 2002 the Company opened a new showroom in the Clifton area of
Bristol replacing a concession outlet that closed during the last financial
year. Results from this new store are encouraging.

Summary of Financial Results

Turnover for the period was £1,777,000 against £1,512,000 in the comparable
period last year.

Gross profit margins improved to 63.9% against 58.6% same period prior year.
Distribution and Administration expenses both declined as a percentage of sales
and in absolute value (against same period prior year) reflecting improved
efficiencies in the business.

Profits before taxation were £142,000 and after taxation were £113,000 (2002 -
£143,000 loss before and after taxation).

Capital expenditures in the period were £153,000 (2002 - £101,000) representing
in the main fitting out costs of the new Bristol showroom and refurbishment of
our principal showroom at Hungerford.

As at 28 February 2003 the Company had cash balances of £471,000 and available
overdraft facilities amounting to £250,000.

Outlook for the Future

During the last two months the Company has experienced a significant slowdown in
orders. It remains unclear if this is a temporary consumer reaction to recent
world events or whether it marks the beginning of a prolonged slowdown in
consumer spending.

In these circumstances, despite very strong first half results, we are cautious
as to the financial outcome for the full year.

As indicated in previous reports, your Board is actively searching to replace
the Company's London showroom. In this respect it is hoped to make an
announcement shortly.

Notwithstanding the economic uncertainties your Board believes that the Company
remains well positioned to grow sales and profits in future years.







John Lewis

Chairman

May 14 2003



PROFIT AND LOSS ACCOUNT

FOR THE SIX MONTHS ENDED 28 FEBRUARY 2003


                                                                Unaudited         Unaudited           Audited
                                                                 6 months          6 months         12 months
                                                                    ended             ended             ended
                                                              28 February       28 February         31 August
                                                                     2003              2002              2002
                                                                     £000              £000              £000

Turnover                                                            1,777             1,512             3,442

Cost of sales                                                       (640)             (626)           (1,494)
                                                                 --------          --------          --------
Gross profit                                                        1,137               886             1,948

Distribution costs                                                  (219)             (274)             (638)

Administration costs                                                (745)             (755)           (1,358)
                                                                 --------          --------          --------
Operating profit/(loss)                                               173             (143)              (48)

Exceptional item                                                        -                 -              (27)

Interest receivable                                                     3                 1                 1

Interest payable                                                     (34)               (1)               (8)
                                                                 --------          --------          --------
Profit/(loss) on ordinary activities before taxation                  142             (143)              (82)

Taxation                                                             (29)                 -                 5
                                                                 --------          --------          --------
Profit/(loss) on ordinary activities after taxation                   113             (143)              (77)

Dividends                                                               -                 -              (55)
                                                                 --------          --------          --------
Retained profit/(loss)                                                113             (143)             (132)
                                                                    =====             =====             =====

Earnings/(loss) per share                                           0.08p           (0.10)p           (0.05)p
                                                                    =====             =====             =====



BALANCE SHEET

AS AT 28 FEBRUARY 2003
                                             Unaudited               Unaudited               Audited
                                         28 February 2003        28 February 2002         31 August 2002
                                         £000        £000        £000        £000        £000       £000
Fixed assets
Intangible assets                              31                      30                     29
Tangible assets                             1,967                   2,006                  1,891
                                         --------                --------               --------
                                                        1,998                   2,036                  1,920
Current assets
Stocks                                        297                     298                    172
Debtors                                        96                     169                    122
Cash at bank and in hand                      471                      77                    557
                                         --------                --------               --------
                                              864                     544                    851
Creditors: amounts falling
due within one year                         (954)                 (1,159)                  (967)
                                         --------                --------               --------
Net current liabilities                                  (90)                   (615)                  (116)
                                                     --------                --------               --------
Total assets less current
liabilities                                             1,908                   1,421                  1,804

Creditors: amounts falling
due after more than one year                            (374)                       -                  (383)

Provisions for liabilities
and charges                                              (25)                    (36)                   (25)
                                                     --------                --------               --------
Total net assets                                        1,509                   1,385                  1,396
                                                        =====                   =====                  =====

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                                   534                     410                    421
                                                     --------                --------               --------
Shareholders funds
- all equity interests                                  1,509                   1,385                  1,396
                                                        =====                   =====                  =====



CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 28 FEBRUARY 2003
                                                                Unaudited         Unaudited           Audited
                                                                 6 months          6 months         12 months
                                                                    ended             ended             ended
                                                              28 February       28 February         31 August
                                                                     2003              2002              2002
                                                                     £000              £000              £000

Operating profit/(loss)                                               173             (143)              (48)

Depreciation                                                           77                72               152

(Profit)/loss on disposal of tangible
fixed assets                                                          (2)                 4                13

(Increase)/decrease in Stock                                        (125)              (74)                51

Decrease /(increase) in Debtors                                        26             (103)              (56)

(Decrease)/increase in Creditors                                     (27)               118               144
                                                                 --------          --------         ---------
Net cash inflow/(outflow) from
operating activities                                                  122             (126)               256

Returns on investment and servicing
of finance                                                           (31)                 -               (7)

Corporation tax                                                         -                 -               (7)

Capital expenditure                                                 (153)             (101)             (101)

Equity dividends paid                                                (15)              (17)              (55)

Financing                                                             (9)                 -               400
                                                                 --------         ---------         ---------
(Decrease)/increase in cash                                          (86)             (244)               486
                                                                    =====             =====             =====



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 2002.

        2.     The earnings per share is calculated on the profit of £113,000
        after taxation and on the basis of 148,745,519 shares in issue. The loss
        per share for the 6 months ended 28 February 2002 is calculated on the
        loss after taxation of £143,000 and on the basis of 148,745,519 shares
        in issue. The loss per share for the year ended 31 August 2002 is
        calculated on the loss after taxation of £77,000 and on the basis of
        148,745,519 shares in issue.

        3.     Copies of the 2003 interim accounts will be available to
        shareholders on the Company's website www.john-lewis.co.uk, in due
        course.

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



        -ends-



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