Tumby Bay IGA - Profits Soar

“Hattam McCarthy Reeves help us to focus on the big picture and work with us to find ways to increase our profits.  They keep an eye on margins and help us to continuously review our business, unlike some other accountants we have used, who were only interested in taking the figures and doing our tax.  Andrew has the whole well-being of the business and the partners in mind.  He keeps it personal and sometimes just rings for a chat and to see how things are going.” 
Kerrie Stutley, Co-owner, Tumby Bay IGA

When Tumby Bay’s IGA supermarket owners found themselves in need of advice about starting a new business partnership with a focus on higher profits, they turned to Hattam McCarthy Reeves.

Andrew Mattner was recommended by the incoming business partner, who had previously worked with Andrew on his other rural business.  He stepped in to find a situation that had become almost unworkable for the business’s original owners.  Andrew helped the partners reach an agreed value for the business and assets and then designed an exit strategy for the departing partner.

To ensure that the new business was on solid ground from the outset, a formal partnership agreement was documented and an Action Plan established, with clear goals for achievement.  New reporting systems were put in place with regular quarterly management meetings.  A Business Case was also put to financiers to fund the immediate commencement of renovations and improvements to the business.  Andrew’s experience working with other supermarket clients helped him to understand the particular issues that were being faced as well as providing relevant industry benchmarks.

Tumby Bay IGA now has new facilities to prepare meat products, chicken and dairy as well as improvements to the fruit and vegetable offering and the addition of a bakery section.  An extension to the supermarket has taken it from two to four checkouts resulting in better customer service standards.  With an increase in staff from 25 to 36 in four years, the supermarket is one of the larger employers in Tumby Bay, providing a significant contribution to the economic future of the town.

Before Hattam McCarthy Reeves became involved, the Tumby Bay IGA had a weekly turnover of $50-$60,000 and this has now grown to a turnover of more than $110,000 weekly and a trebling of the annual profit.  The supermarket has also progressed from having basic IGA status to being an “IGA Fresh” outlet – one of only four such accredited supermarkets in the State. 

Andrew’s confidence in the business has provided the new partners with their own confidence to proceed with an expansion strategy that has led to an exceptional increase in profits.  The partners now receive regular dividend payments and have the ability to meet costs for their ongoing renovations and improvements.

Andrew is always available when needed and regularly visits Tumby Bay to review operations.  His rapport with his clients and the Tumby Bay community is recognised as contributing to the climate of trust that benefits the business in countless ways.

1. Conservation Tillage tax offset Geoff Hattam 20-May-2013