Final Results

John Lewis Of Hungerford PLC
11 December 2000


                         JOHN LEWIS OF HUNGERFORD PLC

            Preliminary Results for the year ended 31 August 2000


COMPANY PROFILE

John Lewis of Hungerford plc ('The Company') 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 a
major investment in advanced automated manufacturing equipment.

Founded in 1972, the Company has achieved significant United Kingdom brand
recognition through long-term sustained advertising in quality magazines. The
Company's principal product line is the 'Artisan'(R) range of kitchens and
furniture. The Company recently expanded its line of branded products to
include a more contemporary 'Shaker' style kitchen range, launched a direct
mail business for replacement kitchen cabinet doors ('Just Doors'(R)) and has
made a number of other important product enhancements.

The Company's growth strategy is 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



HIGH LIGHTS

 1. Profitability restored. Profits before taxation £151,780 (1999 - £102,840
    loss)
 2. Strong positive cash generation. Net cash inflows before financing £325,325
    (1999 - £106,251 outflows)
 3. Dividend restored. Final dividend of 0.034p per share (1999 - nil)
 4. New products introduced. 'Shaker' style kitchen range offered in 'Fired
    Earth' paint colours.
 5. New division launched. 'Just Doors'(R) replacement kitchen cabinet doors by
    mail order.
 6. European sales. Restructuring completed.



CHAIRMAN'S STATEMENT


Results

Sales for the year ended 31 August 2000 increased 11% to £2,913,870 compared
to £2,633,152 for the previous year. Profits before tax for the same period
were £151,780 compared to a loss of £102,840 for the previous year. Gross
margins were 57.4% compared to 55.3% for the previous year. Unit volumes of
kitchens sold decreased 3% whilst furniture and home office products increased
17%.

The profit on ordinary activities after taxation amounted to £152,043 compared
to a loss after taxation of £53,349.

Net cash inflows before financing were £325,325 compared to an outflow of £
106,251 in the previous year.

Basic earnings per share were 0.10p compared to a loss per share in the
previous period of 0.04p.

In view of the strong trading results a dividend of 0.034p per share is being
proposed by the Board (1999 - nil). Subject to shareholders approval the
dividend will be payable to holders of ordinary shares in the register at 3
January 2001 and will be paid on 31 January 2001. The Company will be
distributing profit- related pay in respect of the year's results to eligible
staff amounting to £17,486.

Trading Review

The Company has had a very successful year.

During the year the Company launched two important new product lines.

A 'Shaker' style range of kitchen cabinets which offer a more contemporary
look but with the same quality and affordability as the existing 'Artisan'(R)
range. The line, which is offered in a range of 'Fired Earth' paint colours,
has broadened the Company's customer base appealing, in particular, to younger
consumers.

A new direct mail business under the name 'Just Doors' (R). Just Doors offers
quality replacement kitchen cabinet doors through mail order into an expanding
niche market.

Consumer response to both these new lines has been very encouraging.

The Company has recently made a substantial investment in new automated
manufacturing equipment. This investment will reduce manufacturing costs and
increase production capacity. It will also enable the Company to respond more
rapidly to increases in demand and to offer customers shorter delivery times.

During the year the Company was successful in registering a number of new
trademarks, which it is believed, will prove valuable to planned marketing
initiatives.

United Kingdom

No new outlets were opened in the year under review although one new
concession in Winchester, Hampshire was opened shortly after the end of the
financial year. The Company currently has two showrooms and six managed
concessions. Following the success of the showroom in Tunbridge Wells, Kent,
which was opened last year, the Company is looking to expand the number of
showroom sites. In this respect a new showroom is expected to open shortly in
Harrogate and a number of other potential showroom sites are under
negotiation.

Following the re-focussing of the Liberty Department store in London, the
Company will be relocating its central London concession site to Jerry's Home
Store in the Fulham Road.

Whilst the Company continues to look selectively at new concession sites, the
focus for future outlets will be on Company owned showrooms.

Europe

As previously reported, the high value of sterling relative to the Euro and
increased local competition meant that the direct operation of concession
sites by the Company in the Netherlands and Belgium was no longer viable. The
Company completed the closure of its three European concession sites in
October 2000. Costs associated with the closure were fully provided for in the
previous year.

The Company has now entered into a distributor agreement with its previous
concession partner under which the Company will supply 'own label' kitchens
and furniture ex works into the Netherlands. These products (which will not
carry the John Lewis of Hungerford name or any of the Company's trademarks)
will be offered through the same concession outlets that were operated by the
Company. This will enable the Company to benefit from the goodwill established
in the Netherlands market with its concession partner without the costs of
managing the business. The former staff member of the Company located in the
Netherlands has been recruited by the new business.

Financial Review

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

During the year Net Cash Inflows amounted to £325,325 and all bank borrowings
were repaid. The Company's Balance Sheet is now materially debt free (other
than trade related).

In these circumstances the Directors are proposing to reinstate the payment of
a dividend at a level, which is covered three times by earnings.

Shortly after the year end the Company committed to a significant investment
in new automated manufacturing equipment. The total cost of this investment is
approximately £120,000.

Outlook

Trading in the UK during the first quarter of the financial year to August
31st 2001 has been encouraging and in line with expectations. In particular
the demand for Just Doors(R) products has been growing consistently and we
continue to build resources to support this growth.

Your Board is confident that the improvement in results seen this year will be
maintained.



John Lewis

Chairman

December 11, 2000


PROFIT AND LOSS ACCOUNT

For the year ended 31 August 2000
                                                   2000                  1999
                               Notes                 £                    £

Turnover                         2               2,913,870             2,633,152
Cost of sales                                   (1,241,910)          (1,175,898)
                                                _________             _________

Gross Profit                                     1,671,960             1,457,254

Distribution costs                               (529,353)             (528,583)
Administrative expenses -             983,482                970,682
normal
Administrative expenses -        3     3,364                  42,390
exceptional item
                                      ________              _________
Total administrative expenses                    (986,846)           (1,013,072)
                                                 _________             _________
Operating profit/(loss)          4                155,761              (84,401)

Other income                     7                 3,071                3,512
Interest payable and similar     8                (7,052)              (21,951)
charges
                                                 _________             _________
Profit/(loss) on ordinary                         151,780              (102,840)
activities before taxation

Tax on profit/(loss) on          9                  263                 49,491
ordinary activities
                                                 _________             _________
Profit/(loss) on ordinary                         152,043              (53,349)
activities after taxation

Dividends                       10               (50,000)                 -
                                                 _________             _________
Retained profit/(net deficit)                     102,043              (53,349)
for the financial year
                                                 ========              ========

Earnings per share              11
Basic                                              0.10p               (0.04)p
Fully diluted                                      0.10p               (0.04)p

STATEMENT OF RESERVES

Retained profit brought                           421,751              475,100
forward
Retained profit/(net deficit)                     102,043              (53,349)
for the financial year
                                                 _________             _________
Retained profit carried                           523,794              421,751
forward
                                                 =======               ========


BALANCE SHEET

As at 31 August 2000
                                                   2000                  1999
                               Notes     £           £          £         £

Fixed Assets
Intangible assets               12                25,780                17,002
Tangible assets                 13               1,713,397             1,745,493
                                                  ________             _________
                                                 1,739,177             1,762,495

Current assets
Stocks                          14    195,876                152,101
Debtors                         15     67,766                172,692
Cash at bank and in hand              153,840                 76,303
                                     ________               _________
                                      417,482                401,096

Creditors: amounts falling due  16   (657,928)              (766,903)
within one year
                                      ________              __________
Net current liabilities                          (240,446)             (365,807)
                                                 _________             _________
Total assets less current                        1,498,731             1,396,688
liabilities
                                                 ========              ========

Capital and reserves
Called up share capital         19                148,745              148,745
Share premium account                             824,771              824,771
Other reserves                                     1,421                1,421
Profit and loss account                           523,794              421,751
                                                 _________             _________
Shareholders' funds - all       20               1,498,731             1,396,688
equity interests
                                                 ========              ========

Cash Flow Statement

For The Year Ended 31 August 2000
                                                   2000                  1999
                               Notes                 £                    £

Net cash inflow from operating  21                304,983               90,466
activities

Returns on investments and
servicing of finance
Interest received                      3,071                  3,512
Interest paid                         (7,052)                (21,951)
                                      ________              _________
Net cash outflow from returns                     (3,981)              (18,439)
on investments and servicing
of finance
Corporation tax                                   89,228               (31,224)

Capital expenditure
Payments to acquire intangible        (8,778)                (4,439)
fixed assets
Payments to acquire tangible          (65,059)               (96,229)
fixed assets
Receipts from sales of                 8,932                  2,450
tangible fixed assets
                                     _________              __________
Net cash outflow from capital                    (64,905)              (98,218)
expenditure

Equity dividends paid                                -                 (48,836)
                                                 _________             _________
Net cash inflow/(outflow)                         325,325              (106,251)
before financing

Financing
Issue of ordinary share                  -                    17,000
capital
Cost of share issue                      -                   (6,436)
                                      ________              __________
Net cash inflow from financing                       -                  10,564
                                                 _________             _________
Increase/                       22                325,325              (95,687)

(decrease) in cash
                                                 ========              ========


NOTES TO THE ACCOUNTS

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 admission
      document.

2.    Reconciliation of Movements in Shareholders' funds
                                                           2000         1999
                                                            £             £


      Profit/(loss) for the financial year               152,043      (53,349)
      Dividends                                          (50,000)         -
                                                         _________    __________
                                                         102,043      (53,349)
      New share capital subscribed                          -          10,564
                                                         _________    _________
      Net addition to/(depletion in) shareholders'       102,043      (42,785)
      funds
      Opening shareholders' funds                       1,396,688     1,439,473
                                                        _________     _________


      Closing shareholders' funds                       1,498,731     1,396,688
                                                         ========      =======

3.    Earnings per Share                                   2000         1999

      Earnings per ordinary share is calculated as
      follows:


      Basic
      Profit/(loss) attributable to ordinary             £152,043     (£53,349)
      shareholders
      Weighted average number of ordinary shares in    148,745,519   140,937,903
      issue
      Earnings per ordinary share                         0.10p        (0.04)p
                                                        =========     =========
      Fully diluted
      Profit/(loss) attributable to ordinary             £152,043     (£53,349)
      shareholders
      Weighted average number of ordinary shares in    148,745,519   148,179,900
      issue
      Earnings per ordinary share                         0.10p        (0.04)p
                                                         =========    =========
      Weighted average number of ordinary shares in    148,745,519   140,937,903
      issue - basic calculation
      Number of shares deemed to have been issued           -         7,241,997
      for no consideration in respect of share
      options
                                                        _________     __________
      Weighted average number of ordinary shares in    148,745,519   148,179,900
      issue - fully diluted calculation
                                                        =========     =========
                                                                          

4.    2000 Report and Accounts

      Copies of the 2000 report and accounts will be sent to shareholders in
      due course. Further copies will be available from the Company's nominated
      adviser: Smith & Williamson, No 1 Riding House Street, London, W1A 3AS.

5.    Copy of Announcement

      A copy of this announcement will be available from the nominated adviser:
      Smith & Williamson, No 1 Riding House Street, London, W1A 3AS, for 14
      days from the date of this announcement.