The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

30 March 2023

John Lewis of Hungerford plc

(the "Company")

Half-year report

John Lewis of Hungerford Plc (AIM: JLH), the specialist manufacturer and retailer of kitchens, bedrooms and freestanding furniture, is pleased to announce its unaudited interim results for the six months ended 31 December 2022.

Overview

The Company is pleased to report that the revenue for the half year to 31 December 2022 of £5.4 million (2021: £4.6 million) reflected an improvement of 18% over the corresponding period in 2021 and a 60% growth over the pre-pandemic half year period to 31 December 2019. The total of dispatched sales and confirmed forward orders for the first 38 weeks of trading in the current financial year stands at £9.2 million (2022: £8.5 million).

The underlying adjusted loss before tax* for the half year to 31 December 2022, was £105k (2021: Loss before tax £81k).  In the 2022 calendar year, the Company experienced substantial and sudden increases in costs of some key raw materials. The Company took swift action to raise prices on all new orders from the start of the 2022/23 financial year in order to offset cost increases.

However, it should be noted that the average lead time between taking an order and completing the installation and recognising the sale is six months.  The sales recognised in the first half of the current financial year were predominantly at the previous retail prices before any price increase had been applied, and consequently the gross margin was lower at 42% (FY2021/22: 45%). The Board expects that the gross margin in the second half of the current financial year will benefit from these price increases, which customers have accepted as necessary and market standard increases, and be closer to its historic run rate.  The Board also notes that the significant cost pressures suffered in 2022 are easing, as the current year progresses, with the management team focused on increasing the gross margin through improved purchasing and improving operational efficiencies.

The movement in administration costs is split between additional infrastructure costs in the support functions which have been strengthened to enable the front-line team to focus on conversion; and delivering an unrivalled customer experience. The high levels of quoted business throughout the first half of the financial year demonstrate the brand continuing to build on its digital reach and share of voice in all online platforms. Investment to optimise the website experience for mobile devices has been instrumental in the increase in enquiries into the business. Additional investments in the Company's production capacity, through the recruitment and development of a larger team, will allow the Company to capitalise on a traditionally busier second half year.

*Loss before tax and non-recurring costs of £105k is after adjusting for £69k of one-off, non-recurring costs which occurred in the half year to 31 December 2022, which are not expected to be repeated going forward. These non-recurring costs are related to project and one-off restructuring costs. Reported unaudited loss before tax for the half year to 31 December 2022 was £174k.

Outlook

As stated above, the dispatched sales and confirmed orders (which the Board believes to be the best measure of trading) for the first 38 weeks of trading of the current financial year stood at £9.2 million (2022: £8.5 million). Future orders, against which a first stage deposit has been taken, are tracking the prior year and the Board's central scenario is to deliver a c£12 million full year revenue performance, which the Board believes would result in the profit before tax and non-recurring costs being ahead of the prior year.

Kiran Noonan

Chief Executive Officer and Acting Chairman

29 March 2023

Enquiries:

John Lewis of Hungerford plc                                                                                            01235 774300

Kiran Noonan - Chief Executive Officer and Acting Chairman

Allenby Capital Limited (Nominated Adviser and Broker)                                          020 3328 5656

David Worlidge / Nick Naylor / George Payne (Corporate Finance)

Matt Butlin / Amrit Nahal (Sales and Corporate Broking)