Furniture and electrical goods retailer Harvey Norman has posted a 29 per cent jump in its full-year profit after tax to $448.98 million.

Franchisee sales revenue of its three Australia and New Zealand brands – Harvey Norman, Domayne and Joyce Mayne – was $5.62 billion in the year to June 30, up 5.4 per cent on the prior year.

Revenue from company-owned overseas stores in Singapore, Malaysia, Ireland, Northern Ireland, Slovenia and Croatia rose 2.1 per cent to $1.83 billion, while the final dividend is 26 cents, fully franked, down four cents on last year.

“This is a fantastic effort from our offshore operations,” said Gerry Harvey, chairman of the company.

“Housing and renovation activity continues to be robust, and the large-store formats of the franchised complexes and their tech-savvy staff have really been able to showcase the integration of the latest innovations in home lifestyle technology that is really capturing the imagination and excitement of consumers,” said Harvey.

According to the retailer, solid growth in franchisee sales reflects an economy where retail spending remains above decade averages, particularly in NSW and Victoria, underpinned by strong housing sector activity, lower levels in unemployment, a net increase in overseas migration, and the wealth flow-on effect from higher home prices.

The strong growth in franchisee sales contributed to a 13.6 per cent increase in the result from the franchising operations segment to $304.53 million from $268.15 million in the previous year.

“Franchisees continue to be the dominant players in the home and lifestyle market in Australia, delivering to consumers the range of products they’re looking for, with quality customer service and a brand they can trust,” said Harvey.

“Each franchisee owns and controls their own business, which gives them an uncapped potential to maximise their own earnings. We continue to encourage the entrepreneurial spirit of each of our franchisees.”

The retailer’s board declared payment of a fully-franked dividend of 12.0 cents per share, and also said it’s undertaking a review of the company’s capital management options, including a possible share buy-back, while it considers investment options for the core business.

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