Gerry Harvey rides $500m wave of support for Harvey Norman

Billionaire Gerry Harvey is sitting on a $500m increase in his share fortune in 2019.

Harvey Norman co-founder Gerry Harvey. Picture: James Croucher

Billionaire Gerry Harvey is sitting on a $500 million increase in his share fortune in 2019, as the market backs his retail giant Harvey Norman to its highest levels in 12 months.

Harvey is the executive chairman and biggest shareholder in Harvey Norman, which has risen about 33 per cent in value since January 1 to give him a stake worth more than $1.5 billion.

That rise has also increased the value of the shares held by the company’s chief executive and Harvey’s wife, Katie Page, to about $75m, as well as boosting the fortunes of a few fellow members of The List — Australia’s Richest 250.

Companies connected to investors Grahame Mapp, best known for television production company Omnilab and coal exporter Oakbridge, and billionaire Robert Millner of Washington H. Soul Pattinson fame, are also among Harvey Norman’s top 20 shareholders.

Harvey placed 50th on this year’s edition of The List with an estimated wealth of $1.58bn, most of which is from his Harvey Norman shares and dividend payments in recent years, including the $40m he received for the company’s interim dividend paid in April.

Gerry Harvey

• Age: 78
• Lives: Sydney
• Net worth: $1.58 billion
• Source: Harvey Norman shares
• Secrets of sucess: Building two retail chains: first Norman Ross and then Harvey Norman.

He is now likely to be worth more than $2bn, given his company’s share price performance so far this year.

Harvey established Harvey Norman in 1982 with business partner the late Ian Norman. The pair had started in business with the Norman Ross chain in 1961, after previously selling vacuum cleaners. Norman Ross was sold to Grace Bros and then Alan Bond in 1982, after which Harvey and Norman were sacked. They went on to start their next business with one store in Sydney’s Auburn.

Harvey now oversees an empire with more than 180 stores around the country and is a constant advocate for the retail sector and critic of rival online retailers.

He also has an eclectic mix of other investments, ranging from shares in several small technology and mining stocks to property and horse-racing assets, via his interest in the Vinery Stud business in NSW — other shareholders in Vinery Stud include The List member and stockpicker David Paradice — and the Magic Millions auctions business.

He and long-time friend John Singleton, also a member of The List, have high hopes for their filly Libertini, trained by Anthony Cummings and set to chase rich races in spring.

Another investment that brings ties to both The List and retail is his shareholding in Rod Duke’s New Zealand business Briscoe Group.

The business has a dual-listing structure, with its shares trading on the NZ Stock Exchange and the ASX, with Harvey appearing as the second-biggest shareholder behind only Duke, who has a $628m fortune on The List.

Briscoe owns retail chains Briscoes Homeware, Living and Giving and the local Rebel Sports business. Its shares are up 3 per cent since the beginning of the year and Harvey has a stake worth about $35m.

Harvey has had an even better time of it with CountPlus, the accounting and advice firm network that provides Harvey with yet another connection with a member of The List.

One of the biggest shareholders in CountPlus is Barry Lambert, who is backing last month’s announced move to buy financial planning business Count Financial (founded by Lambert) from Commonwealth Bank for just $2.5m.

That deal has caused CountPlus shares to surge, and they are now trading at 78 per cent above the value they were at on January 1.

Otherwise, Harvey’s other retail share holdings have included clothing brand distributor Gazal — which was taken over by its major shareholder, PVH, earlier this year — and toy company Funtastic, which is down 35 per cent this year.

He also has shares in a couple of companies that have had their share prices effectively track sideways from the start of the year: information technology firm DWS and Emeco, a mining and earthmoving services company that also has Tasmanian’s richest person, Dale Elphinstone, as a shareholder.

Harvey’s other stocks have a mining focus.

He has shares in Lithium Power International, which is developing a lithium mine in Chile and has increased in value by about 21 per cent since January 1.

Then there is NTM Gold, which has gold-mining interests in Western Australia. NTM recently raised about $3.86m from investors but its share price has fallen about 15 per cent this year.