I don't think redundancies alone would be a sign of choppy waters in this context. This would be interesting to analyse the cost savings in the upcoming quarterlies.
I see this as a sign of prudent management and respecting shareholder capital. They have acquired a number of businesses over the past 2 years which significantly increased their headcount. A big part of this strategy is redunancies to improve margins. I doubt any redundancies would be in relation to recent hires of their choosing.
If they have indeed conducted a round of redundancies this quarter, I have confidence they can run the business with lower operating expenses while targeting growth. This is a natural step I'd expect if they are proactively and organically identifying synergies over time whilst concurrently targetting cashflow positive. Hopefully management provide shareholders some disclosure on this in the upcoming 4C.
VNL Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
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