As Chapmans has made a significant investment and now are a...

As Chapmans has made a significant investment and now are a major stock holder of RNL, so one would expect that their investment team has done some extensive DD. However given recent experience they are clearly seeing something that I have missed.

Let’s do a recap on the current Board and Management performance.

• The current Board and management have had over 10 months to deliver on the monthly updates provided to the ASX and failed to meet any.
• The only target they reached was running out of money before anticipated date.
• RNL is so top heavy with approximately 95% of the monthly spend on management and the remainder on technology. Is it little wounder there is no income from the current RNL offering.
• Previously trials based on old offering were set up prior to existing Board in USA and UK and should now be in revenue. Corner stone UK Client has no recent updates and was supposed to have had rapid uptake in Q4 2017 leading to over $1Million income in 2018? (Chairman’s update September 2017).
• Communication skills are poor and the quality of the communications is simply not investment grade.
• Technology has moved significantly away from original intent ignoring R & D completed, just compare current offering to February 2016 investor presentation on the RNL website (http://bit.do/d6KbR).
• The current reduced offering now only includes employees on own payroll for rostering and scheduling, ignoring the increasing move by business to utilise greater number of workers on other suppliers payrolls. The USA it is about 50% and in AU about 30%+.

Hopefully Chapmans will start by cleaning out the existing Board and Management and reduce Board to 3 Directors as you cannot possibly justify 5. Let’s hope this is sorted out prior to the RNL EGM in March and then RNL can get back to a solid income and capital growth.

For me the next 3-6 week will be the make or break for RNL depending on decisions taken.

Imho, dyor