Final Results

John Lewis Of Hungerford PLC
04 December 2003

2003 Highlights

• Sales increase 20% to a record £4,117,081 (2002 - £3,441,965).

• Operating profitability restored to a record £406,706 (2002 - loss £47,959)
  after charging employee profit sharing of £30,600 (2002 - nil).

• Pre tax profits £382,870 (2002 - loss £82,220).

• Net cash inflows from operating activities a record £635,096 (2002 - 
  £256,215).

• Dividend increased 10%.

• Cash balances at 31 August 2003 £937,571 (2002 - £556,329).

• Lease secured for new "flagship" showroom in London



John Lewis of Hungerford plc ("the Company")
Preliminary Results

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. A new division was recently launched to
supply wall panelling and interior doors primarily to the interior designer
market.

Manufacturing and administration is carried out from a purpose built factory at
Wantage, Oxfordshire constructed in 1998. The Company has recently made major
investments in advanced automated manufacturing equipment.

Founded in 1972, the Company is committed to the pursuit of excellence in every
aspect of its business and endeavours to maintain long-term relationships with
its staff, customers and suppliers. A policy of "keep it simple" links with an
innovative and fresh approach to its business. Significant United Kingdom brand
recognition has been achieved through long-term sustained advertising in quality
magazines.

The Company's core product line is the "Artisan(R)" range of kitchens and
furniture. In recent years the Company has expanded its line of branded products
to include the more contemporary "Shaker" style kitchens and the Just Doors(R)
direct mail business for replacement kitchen cabinet doors. Recently the
"Liberty Panelling and Doors"TM brand was launched for panelling and interior
doors.

The Company's growth strategy remains 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





Chairman's Statement

Overview

I am delighted to report on the most successful year in the Company's 30-year
history.

Record sales and profits were achieved and the Company generated cash of more
than £635,000 from its operating activities.
These excellent results are the culmination of several years of effort in
building John Lewis of Hungerford into a Company with a portfolio of brands
offering quality products at affordable prices that customers really want to
live with in their homes.

Results

Sales for the year ended 31 August 2003 increased by 20% to £4,117,081 compared
to £3,441,965 for the previous year.

Profits before tax for the same period were £382,870 compared to a loss of
£82,220 for the previous year and are stated after charging exceptional expenses
of £9,046 (2002 - £27,246) relating to trademark costs and a provision for
employee profit sharing of £30,600 (2002 - nil).

Gross margins increased to 60.5% against 56.6% in the prior year. Unit sales of
kitchens increased by approximately 7% whereas furniture unit sales declined 12%
both compared to the prior year. Sales by mail order division 'Just Doors' were
broadly flat.

The profit for the financial year after taxation amounted to £294,359 (2002 -
loss £77,364).

Net cash inflows before financing were £399,583 (2002 - £86,526).

Basic earnings per share were 0.20p (2002 - 0.05p loss).

Subject to shareholder approval, the dividend per share will be increased by 10%
to 0.041p per share payable to shareholders on the register at 12 December 2003
and will be paid on 27 January 2004.

Trading Review

As indicated above the Company has had a very successful year. Earlier concerns
of a second half slowdown in orders proved to be temporary and the Company
finished the year with record levels of sales on the back of highly successful
promotional activity.

The turnaround in results stems from a number of positive factors. Generally
promotions have cost less and been more successful. Margin improvements stem
from a combination of price increases, sales mix and improvements in production
efficiencies.

Unit sales of kitchens grew an impressive 7% reflecting strong market demand
particularly in the replacement market. In contrast, unit sales of furniture
fell 12%. The decline in unit sales of furniture results in part from the
refurbishment of the Company's Hungerford showroom in early 2003. By far the
largest number of furniture pieces are sold from this store which
is to date the only Company outlet large enough to display the entire furniture
range. During the refurbishment period most furniture pieces were temporarily
removed. In addition unit sales of furniture have also been negatively effected
by the lack of display space in the London area following closure of the
Company's concession in the Fulham Road as previously announced.

Sales to the Netherlands, the Company's only export market, were nominal.

As indicated in our Interim Statement sales of Just Doors have been
disappointing mainly as a result of intense competition from the many new
entrants in the replacement kitchen door market. Unlike Just Doors, many of
these competitors employ direct-sell techniques. Whilst the Company will
continue to market Just Doors products direct to consumers, a new direct mail
division, Liberty Panelling and Doors, was recently launched focusing on the
interior designer market. This line of products includes decorative wall
panelling and interior doors. The new range was launched in September 2003 at
'Decorex' the leading annual showcase for interior design products.

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 have been encouraging.

The Company now trades from 5 showrooms and 4 concession sites.

As previously announced the Company has been searching for sometime to find a
suitable site for a flagship store in London to replace the Fulham Road
concession which closed in 2002 following closure of the host store.

I am delighted to announce that a lease has now been secured by the Company for
a new showroom in Wandsworth Bridge Road, London. This 250 sq m unit, more than
twice the size of the Company's largest store presently, will become the
Company's new flagship. This store will be large enough to display the Company's
entire range of products. It is expected that the anticipated opening date for
this store in Spring 2004 will be used to launch some significant extensions to
the Company's product lines.

This new showroom marks a milestone in the development of the Company. If
successful, it will become the benchmark for future Johnn Lewis of Hungerford
stores.

Financial Review

The Company continues to maintain a highly cash generative business model with
Net Cash Inflows from Operating Activities amounting to £635,096 (2002 -
£256,215).

Cash balances at 31 August 2003 totalled £937,571.

The Company has standby overdraft facilities of £250,000 which have recently
been renewed.

Capital expenditures in the current year totalled £177,639. In the main this
reflects the fitting out costs of the new showroom in Bristol and refitting of
the Company's showroom in Hungerford.

On the basis of the results for the year an increased dividend of 0.041p per
share is being proposed.

The Company took an exceptional charge this year of £9,046 in relation to
trademark costs. For sometime the Company has been endeavouring to register an
olfactory mark in respect of certain of its products as provided by new UK
trademark legislation. However a recent decision by the European Court of
Justice has significantly reduced the likelihood of a
successful registration being obtained in the near future. Although the Company
has not abandoned its attempt at registration, your Board considers it
appropriate to provide for the costs incurred to date.

Outlook

Order input during the first quarter of the current financial year to 31 August
2004 has been slow, although sales enquiries remain solid.

Key events in the current financial year will be the anticipated opening of the
new London showroom in Spring 2004 and development of 'Liberty Panelling and
Doors' as a new niche brand.

Your Board looks forward to the coming year with enthusiasm.


John L. Lewis
Chairman

4 December 2003




Profit and Loss Account for the year ended 31 August 2003

                                                   2003           2002
                                                      £              £

Turnover                                      4,117,081      3,441,965

Cost of sales                                (1,625,831)    (1,494,198)
                                             -----------    -----------

Gross profit                                  2,491,250      1,947,767

Distribution costs                             (663,217)      (637,700)

Administrative expenses                      (1,421,327)    (1,358,026)
                                             -----------    -----------
Operating profit/(loss)                         406,706        (47,959)

Exceptional expenses                             (9,046)       (27,246)

Interest receivable and similar income            7,903          1,074

Interest payable and similar charges            (22,693)        (8,089)
                                             -----------     ----------

Profit/(loss) on ordinary activities
before taxation                                 382,870        (82,220)

Tax on profit/(loss) on ordinary                (88,511)         4,856
activities
                                             -----------    -----------
Profit/(loss) for the financial year            294,359        (77,364)

Dividends                                       (60,500)       (55,000)
                                             -----------    -----------

Retained profit/(loss) for the financial        233,859       (132,364)
year
                                                =======        =======

Earnings/(loss) per share
Basic                                              0.20p         (0.05)p
Fully diluted                                      0.20p         (0.05)p

The profit and loss account has been prepared on the basis that all operations
are continuing operations.

There are no recognised gains and losses other than those passing through the
profit and loss account.


Balance Sheet as at 31 August 2003
                                     2003                         2002
                         £              £             £              £

Fixed assets
Intangible                         19,791                       29,283
assets
Tangible                        1,886,216                    1,890,337
assets
                               ----------                   ----------
                                1,906,007                    1,919,620

Current
assets
Stocks             180,395                      172,232
Debtors             91,556                      122,252
Cash at bank       937,571                      556,329
and in hand
                 ----------                   ----------
                 1,209,522                      850,813

Creditors:      (1,077,507)                    (967,122)
amounts
falling
due within one  
year             ----------                   ----------

Net current                       132,015                     (116,309)
assets/
liabilities
                                ----------                   ----------

Total assets                    2,038,022                    1,803,311
less
current
liabilities

Creditors:                       (362,759)                    (382,790)
amounts
falling
due after more
than one
year

Provisions for                    (45,669)                     (24,786)
liabilities
and charges                    
                               -----------                  -----------
Total net                       1,629,594                    1,395,735
assets
                                  =======                      =======

Capital and
reserves
Called up                         148,745                      148,745
share capital
Share premium                     824,771                      824,771
account
Other reserves                      1,421                        1,421
Profit and                        654,657                      420,798
loss account
                               ----------                   ----------
Shareholders'                   1,629,594                    1,395,735
funds
- all equity                      
interests                         =======                      =======

The financial statements were approved by the Board on 4 December 2003.

John L. Lewis                        Richard D. Worthington F.C.A.
Director                             Director


Cash Flow Statement for the year ended 31 August 2003
                                      2003                        2002
                           £             £             £             £

Net cash inflow                    635,096                     256,215
from
operating
activities

Returns on
investments
and servicing of
finance
Interest               7,903                       1,074
received
Interest paid        (22,693)                     (8,089)
                   ----------                  ----------

Net cash outflow                   (14,790)                     (7,015)
from returns on
investments
and servicing of
finance

Corporation tax                          -                      (6,645)

Capital
expenditure
Payments to           (3,266)                       (639)
acquire
intangible fixed
assets

Payments to         (177,639)                   (115,754)
acquire
tangible fixed
assets

Receipts from         15,182                      15,364
sales
of tangible         
fixed assets        ---------                  ----------

Net cash outflow                  (165,723)                   (101,029)
from
capital
expenditure

Equity dividends                   (55,000)                    (55,000)
paid
                                 ----------                  ----------
Net cash inflow                    399,583                      86,526
before financing

Financing
Mortgage Loan              -                     400,000
Repayment of         (18,341)                          -
Loan
                   ----------                  ----------

Net cash                           (18,341)                    400,000
(outflow)/inflow
from financing
                                 ----------                   ---------

Increase in cash                   381,242                     486,526
                                   =======                     =======

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 Company's 2003 statutory financial statements.

2.   Reconciliation of Movement in Shareholders' funds

                                                 2003             2002
                                                    £                £

     Profit/(loss) for the financial          294,359          (77,364)
     year
     Dividends                                (60,500)         (55,000)
                                            ----------      -----------

     Net addition to/(reduction from)         233,859         (132,364)
     shareholders' funds
     Opening shareholders' funds            1,395,735        1,528,099
                                           -----------     ------------
     Closing shareholders' funds            1,629,594        1,395,735
                                              =======         ========

3.   Earnings per Share

     Earnings per ordinary share is
     calculated as follows:
                                                 2003             2002
     Basic
     Profit/(loss) attributable to           £294,359         £(77,364)
     ordinary shareholders
     Weighted average number of           148,745,519      148,745,519
     ordinary shares in issue
     Earnings/(loss) per ordinary                0.20p           (0.05)p
     share
                                              ========         ========
     Fully diluted
     Profit/(loss) attributable to           £294,359         £(77,364)
     ordinary shareholders
     Weighted average number of           148,745,519      148,745,519
     ordinary shares in issue
     Earnings/(loss) per ordinary                0.20p           (0.05)p
     share
                                              ========         ========
     Weighted average number of           148,745,519      148,745,519
     ordinary shares in issue - basic
     calculation
     Number of shares deemed to have                -                -
     been issued for no consideration
     in respect of share options
                                          ------------    -------------
     - fully diluted calculation          148,745,519      148,745,519
                                             ========         ========

4.   2003 Report and Accounts

     Copies of the 2003 report and accounts will be sent to shareholders
     in due course. Further copies will be available from the Company's
     nominated adviser, Smith & Williamson Corporate Finance Limited, No
     1 Riding House Street, London, W1A 3AS, free of charge, for one
     month from the date of this announcement.

5.   Copy of Announcement

     A copy of this 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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