Interim Results

John Lewis Of Hungerford PLC
10 May 2004


JOHN LEWIS OF HUNGERFORD PLC

HIGHLIGHTS

•    Revenues declined 8% to £1,638,000 (2003 - £1,777,000).

•    Pre-tax profit £5,000 (2003 - £142,000).

•    Net cash outflows from operating activities £70,000 (2003 - £122,000
     inflows).

•    'Flagship' London showroom opened April 2004.


CHAIRMAN'S STATEMENT

Review of Operations

As indicated in our Annual Report dated 4 December 2003, order input remained
slow throughout the six months trading period. As a result sales revenues have
been below expectations, which is reflected in disappointing trading results.

The major focus for the Company and its management throughout the period has
been the design and fit-out of a new 'flagship' showroom in Wandsworth Bridge
Road, London. This showroom opened on 22 April 2004 and is a 'landmark'
development for the Company in terms of size and product offering. The opening
of this store has been used to introduce both a new innovative kitchen line
(Creme de la Creme (TM)) and to launch a significant extension to products
offered under the Company's brand names. These include ceramics, fabrics and
other items for the home. In addition, and for the first time, the Company now
offers a range of furniture for bathrooms.

Kitchen sales revenues declined 8% to some extent reflecting an exceptionally
high order book at the beginning of prior period (commencing 1 September 2002)
rather than a fall in current period sales. By contrast Furniture sales revenue
increased 6%. Results from the Company's Just Doors(R) mail order division have
been particularly disappointing with sales declining 24%, reflecting continuing
competition in this niche sector.

During the period the host store for the Company's concession in Winchester
terminated the Company's concession agreement. The space occupied by the Company
was required by the host store for the expansion of their own business.
Accordingly this concession will close in July 2004. This is disappointing, as
the outlet has been trading successfully. A replacement Company showroom site is
being sought in Winchester.

The Company has reached agreement with Hoopers department store, Wilmslow (host
to the Company's concession) to significantly increase the size of the Company's
concession on similar terms. Accordingly a major refit of this unit can be
expected later in calendar 2004.

Development of the Company's panelling line continues and this will be
relaunched at the 'Daily Telegraph House and Garden Fair' in London during June
2004.

During the period the Company purchased the trademark 'Artisan(R)' broadly
covering all furniture. The Company has until now used this mark with the
agreement of the former trademark proprietor who had previously consented to
limited registration by the Company in relation to kitchen furniture only.
Securing full and broader ownership of the 'Artisan' mark is an important step
towards enhancing the Company's ability to protect its intellectual property
rights.

In April 2004 the Company launched a new website at www.john-lewis.co.uk.

Summary of Financial Results

Turnover for the period was £1,638,000 against £1,777,000 for the comparable
period last year.

Gross profit margins were 63.3% against 63.9% same period prior year.
Distribution expenses remained broadly flat at 12.3% of sales. Sales and
Administration expenses increased to 51.4% of sales (prior year 41.9%)
reflecting selling and other costs as a higher proportion of lower than expected
sales. However by value, all operating expense categories were below your
Board's internal budget expectations for the period.

Profits before taxation were £5,000 (2003 - £142,000). Taxation was nil (2003 -
£29,000)

Capital expenditures in the period were £163,000 (2003 - £153,000) representing
almost entirely costs to date of the new London showroom.

As at 29 February 2004 the Company had cash balances of £686,000 and unused
overdraft facilities amounting to £250,000.

Outlook for the Future

Business remains challenging. As the benefit of increased sales from the new
London showroom is unlikely to be felt in the current financial year, we remain
cautious as to the outcome for the full year. It is anticipated that full year
pre- tax profits will be below that of the prior year.

However with the new London showroom open, a new kitchen line launched and an
expanded product line introduced, your Board believes that the Company remains
well positioned to grow sales and profits in future years.


John Lewis
Chairman

May 10 2004



PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 29 FEBRUARY 2004

                                 Unaudited      Unaudited      Audited
                                  6 months       6 months    12 months
                                     ended          ended        ended
                               29 February    28 February    31 August
                                      2004           2003         2003
                                      £000           £000         £000

Turnover                             1,638          1,777        4,117

Cost of sales                         (600)          (640)      (1,626)
                                  --------       --------     --------
Gross profit                         1,038          1,137        2,491

Distribution costs                    (200)          (219)        (663)

Administration costs                  (842)          (745)      (1,421)
                                  --------       --------     --------
                                        (4)           173          407

Exceptional item                         -              -           (9)

Interest receivable                      9              3            8

Interest payable                         -            (34)         (23)
                                  --------        --------    --------
Profit on ordinary activities            5            142          383
before taxation

Taxation                                 -            (29)         (89)
                                  --------       --------      --------
Profit on ordinary activities            5            113          294
after taxation

Dividends                                -              -          (60)
                                  --------       --------      --------
Retained profit                          5            113          234
                                     =====          =====        =====

Earnings per share                    0.00p          0.08p        0.20p
                                     =====          =====        =====



BALANCE SHEET
AS AT 29 FEBRUARY 2004

                    Unaudited               Unaudited                Audited
                 29 February 2004        28 February 2003         31 August 2003
                   £000        £000        £000        £000        £000        £000

Fixed
assets

Intangible           28                      31                      20
assets

Tangible          1,950                   1,967                   1,886
assets
               --------                --------                --------

                              1,978                   1,998                   1,906

Current
assets

Stocks              368                     297                     180

Debtors              72                      96                      92

Cash at bank        686                     471                     938
and in hand
               --------                --------                --------

                  1,126                     864                   1,210

Creditors:
amounts
falling
due within       (1,071)                   (954)                 (1,078)
one year
               --------                --------                --------

Net current                      55                     (90)                    132
assets/
(liabilities)

                           --------                --------                --------

Total assets
less
current
Liabilities                   2,033                   1,908                   2,038



Creditors:
amounts
falling
due after                      (353)                   (374)                   (363)
more than one
year



Provisions
for
liabilities
and charges                     (46)                    (25)                    (46)
                           --------                --------                --------

Total net                     1,634                   1,509                   1,629
assets
                              =====                   =====                   =====



Capital and
Reserves

Called up                       149                     149                     149
share
capital

Other                             1                       1                       1
reserves

Share premium                   825                     825                     825
account

Profit and                      659                     534                     654
Loss
account
                           --------                --------                --------

Shareholders
funds

- all equity                  1,634                   1,509                   1,629
interests
                              =====                   =====                   =====



CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 29 FEBRUARY 2004

                                 Unaudited      Unaudited      Audited
                                  6 months       6 months    12 months
                                     ended          ended        ended
                               29 February    28 February    31 August
                                      2004           2003         2003
                                      £000           £000         £000

Operating (loss)/profit                 (4)           173          407

Depreciation                            90             77          172

(Profit)/loss on disposal of
tangible
fixed assets                             -             (2)          (2)

(Increase) in Stock                   (188)          (125)          (8)

Decrease in Debtors                     19             26           31

Increase/(decrease) in                  13            (27)          35
Creditors
                                  --------       --------     ---------

Net cash (outflow)/inflow
from
operating activities                   (70)           122          635

Returns on investment and
servicing
of finance                               9            (31)         (15)

Corporation tax                          -              -            -

Capital expenditure                   (163)          (153)        (166)

Equity dividends paid                  (19)           (15)         (55)

Financing                               (9)            (9)         (18)
                                  --------      ---------      ---------
(Decrease)/increase in cash           (252)           (86)         381
                                     =====          =====         =====


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 2003.

2. The earnings per share is calculated on the profit of £5,000 after
   taxation and on the basis of 148,745,519 shares in issue. The earnings
   per share for the 6 months ended 28 February 2003 is calculated on the
   profit after taxation of £113,000 and on the basis of 148,745,519 shares
   in issue. The earnings per share for the year ended 31 August 2003 is
   calculated on the profit after taxation of £294,000 and on the basis of
   148,745,519 shares in issue.

3. Copies of the 2004 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, No 1 Riding House
   Street, London, W1A 3AS for one month from the date of this
   announcement.



-ends-








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