Harvey Norman profits are up 30%, despite losses on a mining camp joint venture

Katie Page-Harvey and Gerry Harvey at the Gold Coast. Matt Roberts/Getty Images

Harvey Norman posted a 30.7% jump in half year profit to $185.51 million on a strong performance by its franchise stores in Australia.

The result would have been bigger but for a loss of $17.51 million relating to investments in mining camp accommodation joint ventures and the write-down of commercial loans in Australia.

Harvey Norman, with its consumer electronics, is a business that should benefit from the closure of Dick Smith Stores.

A short time ago, Harvey Norman shares were up almost 3% to $4.74.

Global sales for the six months to December increased 8% to $3.33 billion. And headline Australian franchisee sales revenue was up 7.7% to $2.72 billion.

Chairman Gerry Harvey says homemaker categories benefited from the strong Australian housing market with house prices and building approvals reaching record levels.

“We anticipate robust construction and housing activity to continue this year, in response to pent-up demand and, particularly in New South Wales, Victoria and the ACT, dwelling starts are materially above long term averages,” he says.

The business is growing in Asia with a new flagship homemaker superstore at Millenia Walk, Singapore, opened in December.

A fully franked dividend of 13 cents a share was declared.

The results in detail:

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