Interim Results

John Lewis Of Hungerford PLC
02 May 2006


JOHN LEWIS OF HUNGERFORD PLC


HIGHLIGHTS

.   Revenues decrease 22% to £1,431,000 (2005 - £1,849,000).

.   Losses before and after taxation £289,000 (2005 - £229,000 loss).

.   Net cash inflows from operating activities £138,000 (2005 - £211,000
    inflows).

.   New Managing Director appointed January 2006.



CHAIRMAN'S STATEMENT


Review of Operations


We indicated in our annual report for the year to 31 August 2005 that trading
was exceptionally difficult in the first quarter of the current financial year.
Order input improved significantly in the second quarter but was too late to be
reflected in sales revenues for the six months to 28 February 2006.


As a result of the above sales declined and losses increased compared to the
same period in the prior year.


During the period your Board has made a number of significant management changes
to improve the performance of the Company. As previously announced, Malcolm
Hepworth joined the Board as Managing Director in January 2006 and in November
2005 Roy Hawthorne joined the Company as Production Manager.


Your Board is now looking at ways to enhance sales growth within the Company's
present cost base.


Summary of Financial Results


Turnover for the period was £1,431,000 against £1,849,000 for the comparable
period last year.


Gross profit margins improved considerably to 63.0% against 52.6% same period
prior year. This improvement reflects reduced sales discounts, efficiency
improvements in manufacturing and selling price increases. However against this
Administration Costs (a significant part of which represents selling expenses)
increased to 70.8% of sales against 51.6% for the prior period. Total selling
expenses increased in absolute terms by 5.7% to 31.8% of sales (2005 - 23.3%)
mainly as a result of payroll and occupancy cost increases.


Distribution expenses fell to 11.7% of sales (2005 - 13.0 %) due in the main to
reductions in advertising and store rental commissions.

Losses before and after taxation were £289,000 (2005 - £229,000 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.


Capital expenditures in the period were £31,000 (2005 - £125,000) representing
expenditures to upgrade production facilities.


Cash inflows from operating activities were £138,000 (2005 - £211,000)


As at 28 February 2006 the Company had cash balances of £472,000 (2005 -
£443,000) and unused overdraft facilities amounting to £250,000.



Outlook for the Future


Although order input at the end of the second quarter was very strong, business
remains highly challenging. We remain cautious as to the outcome for the full
year.






John Lewis
Chairman


2 May 2006



PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2006



                                         Unaudited    Unaudited      Audited
                                          6 months     6 months    12 months
                                             ended        ended        ended
                                       28 February  28 February    31 August
                                            2006         2005         2005
                                            £000         £000         £000

Turnover                                   1,431        1,849        4,351

Cost of sales                               (529)        (876)      (1,854)
                                        --------     --------     --------
Gross profit                                 902          973        2,497

Distribution costs                          (167)        (240)        (727)

Administration costs                      (1,014)        (954)      (1,773)
                                        --------     --------     --------
Operating (loss)                            (279)        (221)          (3)

Interest receivable                            0            2            2

Interest payable                             (10)         (10)         (24)
                                        --------     --------     --------
(Loss) on ordinary activities before
taxation                                    (289)        (229)         (25)

Taxation                                       -            -            7
                                        --------     --------     --------
(Loss) on ordinary activities after
taxation                                    (289)        (229)         (18)

Dividends                                      -            -            -
                                        --------     --------     --------
Retained (loss)                             (289)        (229)         (18)
                                           =====        =====        =====

(Loss) per share                           (0.19)p      (0.15)p      (0.01)p
                                           =====        =====        =====



BALANCE SHEET
AS AT 28 FEBRUARY 2006

                              Unaudited        Unaudited         Audited
                             28 Feb 2006      29 Feb 2005       31 Aug 2005
                             £000    £000     £000     £000     £000     £000
Fixed assets
Intangible assets              27               32                30
Tangible assets             1,833            1,964             1,908
                            -----            -----             -----
                                    1,860             1,996             1,938
Current assets
Stocks                        512              451               356
Debtors                       100              135                74
Cash at bank and in hand      472              443               390
                            -----            -----              -----
                            1,084            1,029               820
Creditors: amounts falling
due within one year        (1,237)          (1,209)             (751)
                            -----            -----              -----
Net current
(liabilities)/assets                 (153)             (180)               69
                                     -----            -----             -----
Total assets less current
Liabilities                         1,707             1,816             2,007

Creditors: amounts falling
due after more than one
year                                 (316)             (334)             (327)

Provisions for liabilities
and charges                           (58)              (71)              (58)
                                    -----             -----             -----
Total net assets                    1,333             1,411             1,622
                                    =====             =====             =====

Capital and Reserves
Called up share capital               149               149               149
Other reserves                          1                 1                 1
Share premium account                 825               825               825
Profit and Loss account               358               436               647
                                    -----             -----             -----
Shareholders funds
                - all equity        1,333             1,411             1,622
interests
                                    =====             =====             =====


CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2006

                                         Unaudited    Unaudited      Audited
                                          6 months     6 months    12 months
                                             ended        ended        ended
                                       28 February  29 February    31 August
                                            2006         2005         2005
                                            £000         £000         £000

Operating (loss)                            (279)        (221)          (3)

Depreciation                                 108          104          232

(Increase)/decrease in Stock                (156)          40          135

(Increase) in Debtors                        (25)         (49)          (1)

Increase/(decrease) in Creditors             490          337         (127)
                                        --------     --------    ---------
Net cash inflow from
operating activities                         138          211          236

Returns on investment and servicing
of finance                                   (10)          (8)         (22)

Corporation tax paid                          (5)           -           14

Capital expenditure                          (31)        (125)        (195)

Equity dividends paid                          -            -            -

Financing                                    (10)          (9)         (17)
                                        --------    ---------    ---------
Increase in cash                              82           69           16
                                           =====        =====        =====



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 2005.


2. The loss per share is calculated on the loss after taxation of £289,000 and
on the basis of 148,745,519 shares in issue. The loss per share for the 6 months
ended 28 February 2005 is calculated on the loss after taxation of £229,000 and
on the basis of 148,745,519 shares in issue. The loss per share for the year
ended 31 August 2005 is calculated on the loss after taxation of £18,000 and on
the basis of 148,745,519 shares in issue.


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











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