Kip McGrath Education Centres has been removed from the 2014 Crowe Horwath-SmartCompany Smart50, which means Pet Circle moves from #2 to the top of our list for 2014.
Unfortunately the information provided by Kip McGrath in relation to its turnover in the 2011-12 financial year was inaccurate.
This inaccuracy was the result of a data entry error by Kip McGrath and was not deliberate.
Every potential finalist in the Smart50 is researched by the SmartCompany editorial team and interviewed.
However, the review process failed to identify the error.
Using Kip McGrath’s correct turnover figures for 2011-2012 the business no longer qualifies for the Smart50.
In order to maintain the integrity of the Smart50 awards, which is in its eighth year now, I have decided to disqualify Kip McGrath from the awards.
This makes Pet Circle the winner of the fastest growing business in the Smart50, which means the company will be awarded the Crowe Horwath prize of a tax consultation to the value of $5000.
Pet Circle was founded by Mike Frizell in 2011 and in a short space of time it has achieved turnover of $12 million and average growth of 329.68%.
Frizell says there was a belief in the pet industry that e-commerce wouldn’t work as the items are bulky and the margins are low.
“Proving the model was the first challenge,” he says.
“We needed to create a smart logistics chain that was profitable. Operating exclusively online, gaining our customers’ trust was another factor crucial to our success.”
SmartCompany apologises for the failure to identify this error prior to the awards and any difficulties this has created for Kip McGrath and Pet Circle.