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SYDNEY - The colourful boss of Harvey Norman Holdings, Gerry Harvey, said yesterday that it did not matter who won the federal election this Saturday, his business was going from strength to strength, after confirming the company's first-half guidance.
Australia's biggest electronics retailer expects its half-year net profit from continuing operations to grow between 25 per cent and 35 per cent on the A$132.87 million ($155.2 million) result it achieved in the first half of last financial year.
Harvey said Harvey Norman was well placed for the holiday season in a very competitive industry.
"We are the biggest player and our buying power is good," he said at the retailer's annual general meeting in Sydney.
"Our relationship with our suppliers is excellent and the Australian dollar is strong, and all those things play in our favour."
Harvey was coy about who he was voting for this Saturday, despite the fact that, if Kevin Rudd comes to power, the retailer might make significant sums on Labor's promise of a computer for every student in years nine to 12.
"Yeah, but if the Liberals win I will likely sell something else," he said.
"Our sales leading up to this election have been quite strong.
"Realistically, it is not going to make a huge difference to our business. We are going from strength to strength."
Harvey, chairman of the company, said the electronics business was growing market share every year but the furniture business had hit a few bumps.
He said he would like to support Australian manufacturers but they were closing due to cheaper offshore production.
"So that industry has got a few problems going forward, but we are still the No 1 furniture retailer in Australia," he said.
"Looking at the other side of our business, which is the majority of our business, the electricals ... every year it gets bigger and bigger.
"The growth and market share just keeps growing."
Harvey Norman's newest venture, OFIS - a new stationery and computer chain - was originally scheduled to open before Christmas but now will open two stores in the New Year in Auburn and Albury.
Harvey said he would like to have about 100 OFIS stores open over the next 10 years to compete with OfficeWorks, which was one of Coles Group's assets.
OfficeWorks is now owned by Wesfarmers.
Harvey said he would be opening up OFIS stores right next to OfficeWorks so they would be competing "head to head".
Harvey also said he would invest "as much as it takes" in the new business to get it up and running, although a profit is not expected for at least two to three years.
Paul English, who has worked for Harvey Norman for about 10 years, will be heading up the OFIS business.
- AAP
