Final Results

John Lewis Of Hungerford PLC
05 December 2006


John Lewis of Hungerford plc

Final results - year ending 31 August 2006

2006 HIGHLIGHTS


. Sales decrease 8.3% to £3,990,510 (2005 - £4,351,312).

. Profit before taxation £63,458 (2005 loss - £24,756)

. Net cash inflows from operating activities £384,948 (2005 - £236,326).

. Board significantly strengthened with the appointment of new Executive
  Directors.


COMPANY PROFILE


John Lewis of Hungerford plc ("the Company") designs, manufactures, and retails
kitchens, furniture, bathrooms and wall panelling direct to the public from its
own showrooms and Company managed concessions throughout the United Kingdom.

In addition the Company operates a United Kingdom direct mail order business,
under the name of Just Doors for replacement kitchen cabinet doors.


Manufacturing and administration is carried out from a purpose built factory at
Wantage, Oxfordshire, constructed in 1998.

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 retro style Creme de la Creme kitchen.

For more information about the Company and its products visit our web sites:

www.john-lewis.co.uk

www.justdoors.co.uk

CHAIRMAN'S STATEMENT

Overview

The overall financial results for the year under review have been disappointing.

However despite sales declining 8.3% over the prior year, the Company has been
able to report a modest pre-tax profit compared to a pre-tax loss in the prior
year for the same period. This resulted from an improvement in margins and
reduction in operating costs.

The focus of your Board during the year has been to agree upon and then
implement a transition in the management of the Company.

As previously announced, a number of important changes have been made to the
composition of the Company's Board. The most recent and significant of these has
been the appointment to the Board of Jonathon Rosby formerly trading director of
MFI Limited as Managing Director Designate of the Company.

Results

Sales for the year ended 31 August 2006 decreased to £3,990,510 (2005 -
£4,351,312).

Profit on ordinary activities before taxation for the same period was £63,458
(2005 - £24,756 loss).

Gross margins increased to 61.8% from 57.4% in the prior year. In the main this
reflects changes in sales mix referred to later in this report. However the
trend of an increasing proportion of sales being made at discounted prices
(commented on in earlier reports) continued during the year under review. This
reflects the price competitive retail environment in which the Company trades.

The profit for the financial year after taxation amounted to £51,361 (2005 -
£17,629 loss).

Net cash inflows before financing were £320,295 (2005 - £33,757).

Basic earnings per share were 0.03p (2005 - losses 0.01p).

No dividend is proposed for the year.

Trading Review

As at 31st August the Company traded from 7 showrooms and 3 concession sites.
Subsequent to the year end one concession site was closed. The decline in sales
revenues reflects an increasingly competitive environment in the Company's core
business of kitchens. As with many other retailers, a number of factors such as
the exceptionally hot summer did reduce in-store footfall, which in turn reduced
sales opportunities. Despite this however some improvement in sales was seen in
the second half of the year under review.

As indicated above the major reason for the decline in sales has been a marked
drop in the number of kitchens sold where the number of unit sales fell by 22%.
This was to some degree offset by a growth in average sales values. Conversely,
furniture sales were very buoyant showing a 50% unit volume increase. A
combination of these factors, offset to a degree by discounting, resulted in an
overall improvement in reported margins.

Our 'Just Doors' division continues to disappoint. Sales values declined 50%
over the prior year same period underlining the intense competition in the
replacement kitchen door market.

Overall Company operating costs declined by 5%.

Selling costs (including sales discounts) increased 3% over the prior year
representing 35% of sales (2005 - 31%).

Marketing and related costs decreased by 22% representing 14% of sales (2005 -
17%).

Production costs (excluding raw materials) decreased 6% over the prior year
representing 15% of sales, a percentage that was broadly unchanged from the
prior year.

Administration and financial costs increased 4% representing 21% of sales (2005
- 19%). The increase arises from legal and personnel costs relating to Board
changes referred to elsewhere in this report.

Financial Review

During the period under review the Company continued to maintain a cash
generative business model with Net Cash Inflows from Operating Activities
amounting to £384,948 (2005 - £236,326).

Cash balances at 31 August 2006 totalled £671,070 (2005 - £390,214).

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

Capital expenditures (net) in the current year totalled £37,763 (2005 -
£194,594) and consisted mainly of factory improvements connected with Health and
Safety legislation compliance.

On the basis of the results for the year no dividend is being proposed.

Outlook

Your Board believes that the Company now has the management team necessary to
significantly improve the financial performance of the business.

Jonathon Rosby brings to the Company a wealth of industry experience that will
be of immense value in moving the Company into a new phase of profitable growth.

The Board's focus going forward will be to use the strength of the John Lewis of
Hungerford brands to drive sales particularly of the Company's core kitchen
products. A number of further changes are currently being implemented to improve
customer service and introduce new products.

All the above changes are targeted to enhance profitability.

As announced earlier in the year once Jonathon Rosby assumes the position of
Managing Director I shall be relinquishing all executive responsibilities within
the Company but will remain as Chairman working on a part time basis.

Your Board looks to the future with confidence.


John L. Lewis
Chairman

5 December 2006



Profit and Loss Account for the year ended 31 August 2006

                                                   2006            2005
                                                      £               £
Turnover                                      3,990,510       4,351,312

Cost of sales                                (1,524,020)     (1,853,980)
                                            -----------     -----------
Gross profit                                  2,466,490       2,497,332

Distribution costs                             (516,942)       (727,537)

Administrative expenses                      (1,865,011)     (1,772,811)
                                            -----------     -----------
Operating profit/(loss)                          84,537          (3,016)

Interest receivable and similar income              640           1,881

Interest payable and similar charges            (21,719)        (23,621)
                                            -----------     -----------
Profit/(loss) on ordinary activities
before taxation                                  63,458         (24,756)

Tax on profit/(loss) on ordinary                (12,097)          7,127
activities
                                            -----------     -----------
Profit/(loss) for the financial year             51,361         (17,629)

Dividends                                             -               -
                                            -----------     -----------

Retained profit/(loss) for the financial         51,361         (17,629)
year
                                            ===========     ===========


Earnings/(loss) per share

Basic                                              0.03p          (0.01)p

Fully diluted                                      0.03p          (0.01)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 2006

                                               2006                      2005
                                     £            £            £            £
Fixed assets
Intangible assets                            25,344                    29,712
Tangible assets                           1,732,296                 1,907,949
                                          ---------                 ---------
                                          1,757,640                 1,937,661

Current assets
Stocks                         455,746                   356,064
Debtors                        151,546                    74,281
Cash at bank and in hand       671,070                   390,214
                             ---------                 ---------
                             1,278,362                   820,559

Creditors: amounts falling  (1,008,433)                 (750,584)
due within one year          ---------                 ---------

Net current assets                          269,929                    69,975
                                          ---------                 ---------

Total assets less                         2,027,569                 2,007,636
current liabilities

Creditors: amounts falling                 (305,945)                 (327,159)
due after more than one
year

Provisions for liabilities                  (47,779)                  (57,993)
and charges
                                          ---------                 ---------
Total net assets                          1,673,845                 1,622,484
                                          =========                 =========

Capital and reserves
Called up share capital                     148,745                   148,745
Share premium account                       824,771                   824,771
Other reserves                                1,421                     1,421
Profit and loss account                     698,908                   647,547
                                          ---------                 ---------
Shareholders' funds                       1,673,845                 1,622,484
- all equity interests                    =========                 =========

The financial statements were approved and signed on behalf of the Board of
Directors on 5 December 2006.


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


Cash Flow Statement for the year ended 31 August 2006

                                               2006                        2005
                                    £             £             £             £

Net cash inflow from                        384,948                     236,326
operating activities

Returns on investments
and servicing of finance
Interest received                 640                       1,881
Interest paid                 (21,719)                    (23,621)
                              --------                    --------

Net cash outflow from                       (21,079)                    (21,740)
returns on investments
and servicing of finance

Corporation tax                              (5,811)                     13,765

Capital expenditure
Payments to acquire                 -                           -
intangible fixed assets

Payments to acquire           (37,763)                   (200,772)
tangible fixed assets

Receipts from sales                 -                       6,178
of tangible fixed assets
                            ---------                   ---------
Net cash outflow from                       (37,763)                   (194,594)
capital expenditure

Equity dividends paid                             -                           -
                                          ---------                   ---------

Net cash inflow before                      320,295                      33,757
financing

Financing
Repayment of Loan             (19,439)                    (17,219)
                             --------                    --------

Net cash (outflow) from                     (19,439)                    (17,219)
financing
                                          ---------                   ---------

Increase in cash                            300,856                      16,538
                                          =========                   =========


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 2006 statutory financial statements.

2.  Reconciliation of Movement in Shareholders' Funds

                                                  2006              2005
                                                     £                 £

    Profit/(loss) for the financial year        51,361           (17,629)
    Dividends                                        -                 -
                                            ----------        ----------

    Net addition to/(reduction from)            51,361           (17,629)
    shareholders' funds
    Opening shareholders' funds              1,622,484         1,640,113
                                           -----------       -----------
    Closing shareholders' funds              1,673,845         1,622,484
                                           ===========          ========

3.  Earnings/(loss) per Share

    Earnings per ordinary share is
    calculated as follows:
                                                  2006              2005
    Basic
    Profit/(loss) attributable to              £51,361          £(17,629)
    ordinary shareholders
    
    Weighted average number of ordinary    148,745,519       148,745,519
    shares in issue
    
    Earnings/(loss) per ordinary share            0.03p            (0.01)p
                                              ==========        ==========
    Fully diluted
    Profit/(loss) attributable to              £51,361          £(17,629)
    ordinary shareholders
    
    Weighted average number of ordinary    148,745,519       148,745,519
    shares in issue
    
    Earnings/(loss) per ordinary share            0.03p            (0.01)p
                                             ===========       ===========
    Weighted average number of ordinary    148,745,519       148,745,519
    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.  2006 Report and Accounts

    Copies of the 2006 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, 25
    Moorgate, London, EC2R 6AY, 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 25 Moorgate,
    London, EC2R 6AY, for one month from the date of this announcement.



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