Interim Results

John Lewis Of Hungerford PLC
10 May 2005


JOHN LEWIS OF HUNGERFORD PLC





HIGHLIGHTS


.  Revenues increase 13% £1,849,000 (2004 - £1,638,000).


.  Pre-tax loss  £229,000 (2004 - £5,000 profit) .


.  Net cash inflows from operating activities £211,000 (2004 - £70,000
   outflows).



CHAIRMAN'S STATEMENT


Review of Operations


Retail trading across many sectors of the UK has slowed considerably during
recent months and these difficult trading conditions have resulted in
disappointing sales.

The need to generate sales resulted in our decision to start the January 2005
Sale period in December 2004. This has resulted in lower margins. There is
little doubt that the prevalent 'discount culture' encourages customers to wait
for sale periods before committing to purchases.

Under present difficult market conditions, we continue to look for new ways to
grow the business. In this respect we have a number of new products in the
development stage.

On the cost side, we have made a number of major changes in our manufacturing
processes. These are already improving production efficiency and product
quality.

Shortly after the period end, we opened a new company showroom in Winchester.
This replaces our successful concession unit in the town. We recently commenced
refitting our concession at Hoopers Department Store (Wilmslow) to create a
larger more contemporary showroom.

Summary of Financial Results

Turnover for the period was £1,849,000 against £1,638,000 for the comparable
period last year.

Gross profit margins were 52.6% against 63.4% same period prior year. This fall
in margin reflects increased promotional discounting and the effects of
exceptionally high work in progress at the beginning of the current financial
year.  Distribution expenses were 13.0% of sales (prior year 12.2%). Sales and
Administration expenses remained flat at 51.6% of sales (prior year 51.4%)

Losses before and after taxation were £229,000 (2004 - £5,000 profit).

Capital expenditures in the period were £125,000 (2004 - £163,000) representing
almost entirely costs to date of the new showroom in Winchester.

As at 28 February 2005 the Company had cash balances of £443,000 and unused
overdraft facilities amounting to £250,000.

Outlook for the Future

Business remains highly challenging and we remain cautious as to the outcome for
the full year.



John Lewis
Chairman

May 10 2005




PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2005



                                       Unaudited      Unaudited      Audited
                                        6 months       6 months     12 months
                                         ended          ended         ended
                                      28 February    29 February    31 August
                                           2005           2004         2004
                                           £000           £000         £000
Turnover                                  1,849          1,638        3,609

Cost of sales                              (876)          (600)      (1,342)
                                        --------       --------      --------
Gross profit                                973          1,038        2,267

Distribution costs                         (240)          (200)        (601)

Administration costs                       (954)          (842)      (1,637)
                                        --------       --------      --------
Operating (loss)/profit                    (221)            (4)          29

Interest receivable                           2              9           14

Interest payable                            (10)             -          (21)
                                        --------       --------      --------
(Loss)/profit on ordinary activities       (229)             5           22
before taxation

Taxation                                      -              -          (11)
                                        --------       --------      --------
(Loss)/profit on ordinary activities       (229)             5           11
after taxation

Dividends                                     -              -            -
                                        --------       --------      --------
Retained (loss)/profit                     (229)             5           11
                                         =====          =====         =====

(Loss)/earnings per share                 (0.15)p         0.00p        0.01p
                                         =====          =====         =====



BALANCE SHEET

AS AT 28 FEBRUARY 2005

                    Unaudited               Unaudited                Audited
                28 February 2005        29 February 2004         31 August 2004
                £000        £000        £000        £000        £000        £000
Fixed
assets
Intangible        32                      28                      34
assets
Tangible       1,964                   1,950                   1,942
assets
              --------                --------                --------
                           1,996                   1,978                   1,976
Current
assets
Stocks           451                     368                     491
Debtors          135                      72                      86
Cash at bank     443                     686                     374
and in hand
              --------                --------                --------
               1,029                   1,126                     951
Creditors:
amounts
falling
due within    (1,209)                 (1,071)                   (872)
one year
              --------                --------                --------
Net current                 (180)                     55                      79
(liabilities)
/assets
                        --------                --------                --------
Total assets
less
current
Liabilities                1,816                   2,033                   2,055

Creditors:
amounts
falling
due after                   (334)                   (353)                   (344)
more than one
year

Provisions
for
liabilities
and charges                  (71)                    (46)                    (71)
                          --------                --------                --------
Total net                  1,411                   1,634                   1,640
assets
                            =====                   =====                   =====

Capital and
Reserves
Called up                    149                     149                     149
share
capital
Other                          1                       1                       1
reserves
Share premium                825                     825                     825
account
Profit and                   436                     659                     665
Loss
account
                          --------                --------                --------
Shareholders
funds
- all equity               1,411                   1,634                   1,640
interests
                            =====                   =====                   =====



CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 28 FEBRUARY 2005

                                       Unaudited      Unaudited      Audited
                                        6 months       6 months     12 months
                                         ended          ended         ended
                                      28 February    29 February    31 August
                                           2005           2004         2004
                                           £000           £000         £000

Operating (loss)/profit                    (221)            (4)          29

Depreciation                                104             90          211

Decrease/(increase) in Stock                 40           (188)        (167)

(Increase)/decrease in Debtors              (49)            19           18

Increase/(decrease) in Creditors            337             13          (76)
                                        --------       --------     ---------
Net cash inflow/(outflow) from
operating activities                        211            (70)          15

Returns on investment and servicing
of finance                                   (8)             9           (7)

Corporation tax                               -              -          (70)

Capital expenditure                        (125)          (163)        (424)

Equity dividends paid                         -            (19)         (60)

Financing                                    (9)            (9)         (18)
                                        --------      ---------     ---------
Increase/(decrease) in cash                  69           (252)        (564)
                                         =====          =====         =====



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 2004.


2.  The loss per share is calculated on the loss after taxation of
    £229,000 and on the basis of 148,745,519 shares in issue.  The earnings per
    share for the 6 months ended 29 February 2004 is calculated on the profit 
    after taxation of £5,000 and on the basis of 148,745,519 shares in issue. 
    The earnings per share for the year ended 31 August 2004 is calculated on 
    the profit after taxation of £11,000 and on the basis of 148,745,519 shares
    in issue.


3.  Copies of the 2005 interim accounts will be available to shareholders
    on the Company's website www.john-lewis.co.uk,


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-






                      This information is provided by RNS
            The company news service from the London Stock Exchange