Harvey Norman expects the strengthening housing market to boost its business, after achieving sales and profit growth in the past year.
The electrical and homewares retailer’s like-for-like sales grew 4.7 per cent in the year to June 30 to $5.77 billion.

It made a net profit of $211.7 million, up 49 per cent from $142.2 million in the previous year.

The profit growth was partly due to changes to the valuation of its massive property portfolio.

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Excluding those factors, profit was up 20 per cent on the previous year.

Harvey Norman shares were up 19 cents, or 5.8 per cent, at $3.48 at 1135 AEST.

Chairman Gerry Harvey said it was pleasing to see improved performances in 2013/14 from each of the company’s business segments, despite some short term weakness related to the Federal budget and general weakness in retail.

“This is a solid financial result underpinned by sound strategic decision making and the strength of our integrated retail, franchising, property and digital system,” he said.

The company expects a robust outlook for the housing market to underpin its earnings growth.

“Favourable trends are evident in the Australian housing market, and we are positioned to harness our market-leading position in homemaker product categories to build additional market share,” Mr Harvey said.

Shareholders will receive a final dividend of eight cents per share, up from 4.5 cents a year ago.