Interim Results

John Lewis Of Hungerford PLC
29 May 2007


JOHN LEWIS OF HUNGERFORD PLC ("John Lewis of Hungerford" or the "Company")

Interim results - period ending 28 February 2007

HIGHLIGHTS

• Revenues increase 32% to £1,896,000 (2006 - £1,431,000).

• *Normalised loss before taxation reduced to £51,000 (2006 - £289,000 loss).

• Net cash inflows from operating activities £195,000 (2006 - £138,000).

* Normalised loss is loss before taxation excluding the first time application
  of accounting standard FRS20.

CHAIRMAN'S STATEMENT

Review of Operations

Changes to the Board and executive management of the Company addressed in prior
announcements are beginning to deliver results. The sales performance of the
Company has shown marked improvement and first half losses have been
substantially reduced.

Importantly, other significant changes within the Company have yet to be
reflected in the financial numbers. These include the recent introduction of a
new kitchen range offered in both solid oak and walnut, much wider accessory
offerings (for example granite and stone worktops) and changes in production
processes and customer service.

With the above in place, the Company is now competitively positioned to deliver
attractive new products in terms of both offering and price.

Summary of Financial Results

Turnover for the period was £1,896,000 against £1,431,000 for the comparable
period last year.

Unit sales of kitchens grew 50%; sales of furniture units grew 1%.

Gross profit margins were broadly flat at 62.0% against 63.0% in the same period
in the prior year.

The pattern of sales continues to be increasingly skewed to promotional events.
Much of the sales revenue in the period was at discounted prices, although the
financial impact of this has been reduced through price increases.

Normalised losses before taxation were £51,000 (2006 - £289,000 loss). As in the
prior year, due to uncertainties as to the outcome of the current year, no tax
credit has been booked in these interim statements against current period
losses.

Normalised losses exclude the first time application of accounting standard
FRS20 in relation to unvested share options. The charge for the period amounted
to £15,000. Your Board considers that the arbitrary nature of the FRS20
methodology means that the resulting charge has little meaningful relevance to
the reported results.

Capital expenditures in the period were £5,000 (2006 - £31,000).

Net cash inflows from operating activities were £195,000 (2006 - £138,000).

As at 28 February 2007 the Company had cash balances of £841,000 (2006 -
£472,000) and unused overdraft facilities amounting to £250,000.


Outlook for the Future

Following a successful Winter Sale, recent order input has been weaker than
expected although the last few weeks have seen some up-turn.

We continue to work on the development of further new product lines to broaden
the appeal of the John Lewis of Hungerford brand. In addition we are continuing
to extend the range of appliances and accessories offered by the Company.

Our sales focus remains firmly on the core business of kitchens and key
furniture lines.

The Board remains very positive about the progress being made within the
business.

Whilst we remain cautious as to the outcome for the full year, we do expect a
continuation of the improving performance over the remainder of the financial
year.


John Lewis
Chairman

29 May 2007


PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2007

                                        Unaudited      Unaudited      Audited
                                         6 months       6 months    12 months
                                            ended          ended        ended
                                      28 February    28 February    31 August
                                             2007           2006         2006
                                                        Restated
                                             £000           £000         £000

Turnover                                    1,896          1,431        3,990

Cost of sales                                (719)          (529)      (1,524)
                                         --------       --------     --------
Gross profit                                1,177            902        2,466

Distribution costs                           (249)          (248)        (517)

Administration costs                         (970)          (933)      (1,865)
                                         --------       --------     --------
Operating (loss)/profit                       (42)          (279)          84

Interest receivable                             1              0            1

Interest payable                              (10)           (10)         (22)
                                         --------       --------     --------
(Loss)/profit on ordinary activities
before taxation                               (51)          (289)          63

Share based payment (FRS 20)                  (15)             -            -

Taxation                                        -              -          (12)
                                         --------       --------     --------
(Loss)/profit on ordinary activities
after taxation                                (66)          (289)          51

Dividends                                       -              -            -
                                         --------       --------     --------
Retained (loss)/profit                        (66)          (289)          51
                                         ========       ========     ========

(Loss)/profit per share
Basic                                       (0.04)p        (0.19)p       0.03p
Fully diluted                               (0.04)p        (0.19)p       0.03p
                                            =====          =====        =====


BALANCE SHEET

AS AT 28 FEBRUARY 2007

                    Unaudited             Unaudited              Audited
                28 February 2007      28 February 2006       31 August 2006
                   £000       £000       £000       £000       £000       £000
Fixed assets
Intangible           23                    27                    26
assets
Tangible          1,652                 1,833                 1,732
assets
               --------              --------              --------
                             1,675                 1,860                 1,758
Current
assets
Stocks              485                   512                   456
Debtors             103                   100                   151
Cash at bank        841                   472                   671
and in hand
               --------              --------              --------
                  1,429                 1,084                 1,278
Creditors:
amounts
falling
due within one   (1,139)               (1,237)               (1,008)
year
               --------              --------              --------
Net current
assets/                                                                    
(liabilities)                  290                  (153)                  270
                          --------              --------              --------
Total assets
less current
liabilities                  1,965                 1,707                 2,028

Creditors:
amounts
falling
due after more
than one year                 (294)                 (316)                 (306)

Provisions for
liabilities
and charges                    (48)                  (58)                  (48)
                          --------              --------              --------
Total net                                                                
assets                       1,623                 1,333                 1,674
                          ========              ========              ========

Capital and
Reserves

Called up                                                                  
share
capital                        149                   149                   149

Other                             
reserves                         1                     1                     1

Share premium                  
account                        825                   825                   825

Share option                    
capital                         15                     -                     -

Profit and                    
loss account                   633                   358                   699

                          --------              --------              --------
Shareholders'
funds - all 
equity 
interests                    1,623                 1,333                 1,674

                          ========              ========              ========


CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2007

                                          Unaudited      Unaudited     Audited
                                           6 months       6 months   12 months
                                              ended          ended       ended
                                        28 February    28 February   31 August
                                               2007           2006        2006
                                               £000           £000        £000

Operating (loss)/profit                         (42)          (279)         84

Depreciation                                     88            108         218

(Increase) in stock                             (29)          (156)       (100)

Decrease/(increase) in debtors                   48            (25)        (57)

Increase in creditors                           130            490         240
                                           --------       --------    --------
Net cash inflow from
operating activities                            195            138         385

Returns on investment and servicing
of finance                                       (9)           (10)        (21)

Corporation tax paid                              -             (5)         (6)

Capital expenditure                              (5)           (31)        (38)

Equity dividends paid                             -              -           -

Financing                                       (11)           (10)        (19)
                                           --------       --------    --------
Increase in cash                                170             82         301
                                           ========       ========    ========

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 2006.

2. The basic loss per share is calculated on the loss after taxation of £66,000
and on the basis of 148,745,519 shares in issue. The basic loss per share for
the 6 months ended 28 February 2006 is calculated on the loss after taxation of
£289,000 and on the basis of 148,745,519 shares in issue. The basic profit per
share for the year ended 31 August 2006 is calculated on the profit after
taxation of £51,000 and on the basis of 148,745,519 shares in issue.

The fully diluted loss per share is calculated on the loss after taxation of
£66,000 and on the basis of 156,782,198 shares in issue. The fully diluted loss
per share for the 6 months ended 28 February 2006 is calculated on the loss
after taxation of £289,000 and on the basis of 148,745,519 shares in issue. The
fully diluted profit per share for the year ended 31 August 2006 is calculated
on the profit after taxation of £51,000 and on the basis of 148,745,519 shares
in issue.

3. The company has applied FRS20 - Share-based Payment, for the first time in
this interim report. Under FRS20 the amount to be charged to the Profit and Loss
account is based on an estimate of the fair value of any share-based payment (in
the case of the Company this is options over its shares) between the date of
grant and the date of vesting. This fair value figure is then adjusted by making
estimates of the number of share options which are likely to vest. The resulting
amount to be charged is then time-apportioned over the period from the date of
grant to the date of vesting.

To determine the value of the share options in accordance with the above, the
Company has used a pricing model relevant to share options. This has resulted in
a charge of £15,419 to the profit and loss account for the six months to 28
February 2007.

4. Copies of the 2007 interim accounts will be available to shareholders on the
Company's website www.john-lewis.co.uk.

5. Copies of this announcement will be available from the Nominated Adviser,
Smith & Williamson Corporate Finance Limited, 25 Moorgate, London, EC2R 6AY for
one month from the date of this announcement.






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