RETAILER Harvey Norman has posted a “best ever” profit and promised shareholders there is plenty more to come.
The $260 million result was up 28 per cent and above analysts’ expectations. But if one-off profits are included — such as the $72 million it picked up from the sale of Rebel Sport and the float of financing company FlexiGroup — earnings hit $407 million, up 77 per cent.
“It is the best profit we have ever made,” said founder Gerry Harvey, adding he was ready to go on a spending spree.
“We’re geared at a bit over 30 per cent, so if an acquisition came along and you wanted to buy it for $100 million or $1 billion, you could,” he said.
In the 2006-07 year turnover was $5.4 billion, and this year it is set to hit between $6 billion and $6.5 billion, Mr Harvey said.
Sales would be boosted by more stores and the continuing demand for flat-screen televisions and iPods.
He said three out of four people were still potential customers as they did not already own them.
Fees from franchisors of 192 stores made the biggest contribution to the bottom line, adding $242 million in pre-tax profit, up 43 per cent on last year.
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