Final Results

John Lewis Of Hungerford PLC
20 February 2006


John Lewis of Hungerford plc


Final results - year ending 31 August 2005


2005 HIGHLIGHTS

. Sales increase 20.6% to £4,351,312 (2004 - £3,608,597).

. Operating loss £3,016 (2004 profit - £28,675).

. Net cash inflows from operating activities £236,326 (2004 - £15,003).

. Cash balances at 31 August 2005 £390,214 (2004 - £373,676).

. Board strengthened with the appointment of new Executive Director in January
  2006.


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


The financial results for the year under review are disappointing. Despite sales
growth of more than 20% the Company reported a small operating loss.


However the Company's products remain in the forefront of design. In September
2004, the Company's 'Creme de la Creme' kitchen won a BIDA (British Interior
Design Association) award for outstanding design and best product at the DECOREX
2004 exhibition in London.


The Company continues to develop its portfolio of brands offering quality
products at affordable prices, which customers really want to have in their
homes.


Sales for the year ended 31 August 2005 increased by 20.6% to £4,351,312
compared to £3,608,597 for the previous year.

Losses before tax for the same period were £24,756 compared to a profit of
£22,016 for the previous year.


Gross margins declined to 57.4% from 62.8% in the prior year. This reflects a
higher proportion of sales made at discounted prices in the present competitive
retail environment.


The loss for the financial year after taxation amounted to £17,629 (2004 -
£10,519 profit).


Net cash inflows before financing were £33,757 (2004 - £546,214 outflows).


Basic losses per share were 0.01p (2004 - earnings 0.01p).


No dividend is proposed for the year.


The Company currently trades from 7 showrooms and 3 concession sites.


As indicated above the financial results for the year have been disappointing.

Unit sales of kitchens increased by approximately 2% whereas furniture unit
sales were broadly flat (both compared to the prior year). Sales by the mail
order division 'Just Doors' increased 3% in a highly competitive market.


Sales of 'Just Doors' continue to be disappointing as a result of intense
competition in the replacement kitchen door market.


The results for the period were significantly improved by an exceptionally
successful summer 2005 promotion. In the month of August 2005 invoiced sales
amounted to £628,715 representing 14.4% of the annual sales. This demonstrates
how promotionally focused the Company's markets have become.


Direct Selling costs (including sales discounts) increased 32% over the prior
year representing 31.0% of sales. In addition to a substantial increase in
promotional discounts, this cost increase reflects full year operating costs of
the Fulham Road showroom opened during the prior year.


Marketing and related costs increased 8.4% over the prior year representing
16.8% of sales. Production costs (excluding raw materials) increased 10.5% over
the prior year. Administration and Financial costs were broadly flat compared to
the prior year.


During the period under review the Company continued to maintain a cash
generative business model with Net Cash Inflows from Operating Activities
amounting to £236,326 (2004 - £15,003).


Cash balances at 31 August 2005 totalled £390,214 (2004 - £373,676).


The Company has standby overdraft facilities of £250,000.

Capital expenditures (net) in the current year totalled £194,594 (2004 -
£423,930) and consisted mainly of the costs of opening one new showroom
(formerly a concession) and refitting a further showroom.


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


During September and October 2005 the Company experienced a severe downturn in
orders which negatively impacted the financial performance and cash position of
the Company. Results since, however, have been encouraging, resulting in a
strong order book. Nevertheless due to the poor start the results for the first
half of the year are likely to show a significant trading loss and the outcome
for the full year remains challenging.


In January 2006, Malcolm Hepworth joined the Board of the Company as a Director
and under the terms of a consultancy arrangement assumed certain executive
responsibilities in relation to the Company's business. This change will allow
myself as Chairman to focus on new product development and marketing, so
essential to our Company's future.

Malcolm comes to the Company with a wealth of retail experience which will be of
immense value in the present tough trading climate.


John L. Lewis
Chairman
20 February 2006


Profit and Loss Account for the year ended 31 August 2005

                                                    2005            2004
                                                       £               £

Turnover                                       4,351,312       3,608,597

Cost of sales                                 (1,853,980)     (1,341,659)
                                             -----------     -----------

Gross profit                                   2,497,332       2,266,938

Distribution costs                              (727,537)       (600,998)

Administrative expenses                       (1,772,811)     (1,637,265)
                                             -----------     -----------
Operating (loss) / profit                         (3,016)         28,675

Interest receivable and similar income             1,881          14,498

Interest payable and similar charges             (23,621)        (21,157)
                                             -----------     -----------

(Loss) / profit on ordinary activities
before taxation                                  (24,756)         22,016

Tax on (loss) / profit on ordinary                 7,127         (11,497)
activities
                                             -----------     -----------
(Loss) / profit for the financial year           (17,629)         10,519

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

Retained (loss) / profit for the financial       (17,629)         10,519
year
                                                   =======         =======


(Loss) / earnings per share

Basic                                              (0.01)p          0.01p

Fully diluted                                      (0.01)p          0.01p


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



Balance Sheet as at 31 August 2005

                                               2005                      2004
                                     £            £            £            £

Fixed assets
Intangible assets                            29,712                    34,077
Tangible assets                           1,907,949                 1,941,590
                                          ---------                 ---------
                                          1,937,661                 1,975,667

Current assets
Stocks                         356,064                   490,987
Debtors                         74,281                    86,243
Cash at bank and in hand       390,214                   373,676
                             ---------                 ---------
                               820,559                   950,906

Creditors: amounts falling    (750,584)                 (871,866)
due within one year          ---------                 ---------

Net current assets                           69,975                    79,040
                                          ---------                 ---------

Total assets less                         2,007,636                 2,054,707
current liabilities

Creditors: amounts falling                 (327,159)                 (344,028)
due after more than one
year

Provisions for liabilities                  (57,993)                  (70,566)
and charges
                                          ---------                 ---------
Total net assets                          1,622,484                 1,640,113
                                            =======                   =======

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                     647,547                   665,176
                                          ---------                 ---------
Shareholders' funds                       1,622,484                 1,640,113
- all equity interests                      =======                   =======

The financial statements were approved by the Board on 20 February 2006.


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


Cash Flow Statement for the year ended 31 August 2005

                                               2005                        2004
                                    £             £             £             £

Net cash inflow from                        236,326                      15,003
operating activities

Returns on investments
and servicing of finance
Interest received               1,881                      14,498
Interest paid                 (23,621)                    (21,157)
                             --------                    --------

Net cash outflow from                       (21,740)                     (6,659)
returns on investments
and servicing of finance

Corporation tax                              13,765                     (70,128)

Capital expenditure
Payments to acquire                 -                     (17,590)
intangible fixed assets

Payments to acquire           (22,772)                   (414,942)
tangible fixed assets

Receipts from sales             6,178                       8,602
of tangible fixed assets
                            ---------                   ---------
Net cash outflow from                      (194,594)                   (423,930)
capital expenditure

Equity dividends paid                             -                     (60,500)
                                          ---------                   ---------

Net cash inflow / (outflow)                  33,757                    (546,214)
before financing

Financing
Repayment of Loan             (17,219)                    (17,681)
                             --------                    --------

Net cash (outflow) from                     (17,219)                    (17,681)
financing
                                          ---------                   ---------

Increase / (decrease) in                     16,538                    (563,895)
cash
                                            =======                     =======


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 2005 statutory financial statements.

2.  Reconciliation of Movement in Shareholders' funds

                                                  2005              2004
                                                     £                 £

    (Loss) / profit for the financial          (17,629)           10,519
    year
    Dividends                                        -                 -
                                            ----------        ----------

    Net (reduction from) / addition to         (17,629)           10,519
    shareholders' funds
    Opening shareholders' funds              1,640,113         1,629,594
                                           -----------       -----------
    Closing shareholders' funds              1,622,484         1,640,113
                                              ========           =======

3.  (Loss) / earnings per Share

    Earnings per ordinary share is
    calculated as follows:
                                                  2005              2004
    Basic
    (Loss) / profit attributable to           £(17,629)          £10,519
    ordinary shareholders
    Weighted average number of ordinary    148,745,519       148,745,519
    shares in issue
    (Loss) / earnings per ordinary share         (0.01)p            0.01p
                                            ==========        ==========
    Fully diluted
    (Loss) / profit attributable to           £(17,629)          £10,519
    ordinary shareholders
    Weighted average number of ordinary    148,745,519       148,745,519
    shares in issue
    (Loss) / earnings per ordinary share         (0.01)p            0.01p
                                           ===========       ===========
    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.  2005 Report and Accounts
    Copies of the 2005 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.



-ends-







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