The Royal Mint has announced another year of financial success and improved profitability – a further year of improved performance.
An operating profit before exceptional items of £9. 6 million (2006-07: £8. 7m) has been delivered on sales of £131. 8 million, and profit after exceptional items and interest was £7. 2 million, compared with £1. 2 million for the previous year. This improved financial performance, which exceeds the Ministerial Target, means the Royal Mint will pay a dividend of £3. 9 million into the public purse.
These results reflect the Royal Mint’s position as the leading exporting mint in the world, with approximately 15% of the available global market, consolidating its status as a major supplier of steel-plated coinage products.
The Exchequer Secretary to the Treasury, Angela Eagle MP, said:
‘I welcome the continued positive financial performance of the Royal Mint over the last 12 months. After returning to being a profitable organisation in 2006- 07, the key challenge for the year was to build upon this foundation and take the business to the next level. This report demonstrates that significant progress has been made and recognises the continued dedication and contributions of the management team and employees.’
A development of national significance was the launch in April 2008 of new designs for seven of the coins in everyday use, the first time such a change has taken place in 40 years. Coverage on television and in newspapers was extensive and largely positive, representing the successful culmination of a three-year project to rejuvenate the nation’s circulating coinage.
The Exchequer Secretary to the Treasury continued:
‘I am pleased with the new reverse designs for circulating coins, which interpret the traditional theme of heraldry in a contemporary way, and I look forward to their introduction to circulation later this year.’
The Circulating Coin business delivered its second year of increased profitability and 14% growth in turnover to £85 million (2006-07: £74. 4 million), which contributed significantly to the Royal Mint’s strong financial performance during the year.
Of particular note was its growth in the overseas market, which was evidenced by the award of a major contract with the Egypt Mint Authority for coins and blanks, as well as significant orders from Trinidad & Tobago, Macau, Rwanda and Eastern Caribbean Central Bank (ECCB). These are just some examples of the 52 overseas customers that chose the Royal Mint as preferred supplier for circulating coins and ready-for-striking blanks.
The Collector Coin business also delivered another successful year, generating a £10. 5 million contribution to common costs compared with £9. 7 million in 2006-07. It benefited from the popularity of a number of commemorative products, especially the crown piece to celebrate the Queen and Prince Philip’s Diamond Wedding anniversary.
Mike Davies, Chairman of the Royal Mint, added:
‘The Royal Mint is entering an exciting but challenging period. Whilst its primary function of supplying the United Kingdom with circulating coins remains, it also faces challenges and opportunities to enhance further its commercial operation for the benefit of the Government as its shareholder. The last two years give us grounds for encouragement and we relish the challenge ahead.’
Under the new vision of ‘Making Money for Everyone‘, the Royal Mint will continue its primary function of supplying the United Kingdom with circulating coins and look to reinforce its position as a major global supplier of steel-plated products.
Work is well underway on a new strategic direction for the Collector Coin business to help retain the Royal Mint’s market leading position. The exclusive rights for collector coins and medallions for the London 2012 Olympic Games awarded to the Royal Mint will be the perfect platform from which to build. The programme commences in August 2008 with coins to mark the handover from the Beijing to London. This activity will be led by Dave Knight, who was appointed as Director of Collector Coin Marketing in January 2007 on an interim basis.
Andrew Stafford, Chief Executive of the Royal Mint, concluded:
‘The work of the Royal Mint is to be found in the pockets and purses of 60 million people in the United Kingdom alone. In fact, solely on the basis of this year’s activities, the products of the Royal Mint’s 35 acre site in South Wales were used by 500 million people in 52 different countries. It is fair to say that the Royal Mint’s products have one of the largest number of users of any organisation in the world.
‘As a business, the Royal Mint has clear objectives and excellent opportunities, both domestically and internationally. As an institution, its reputation for quality and innovation is high and its public profile is rising. With the plans that are now in place for the next 12 months, combined with the efforts of a newly motivated workforce, I am confident that sustained profitability is achievable.’
ROYAL MINT ANNUAL RESULTS
United Kingdom sales
Operating profit before exceptional items
Total assets less current liabilities at 31 March
The Royal Mint Annual Report 2007-08 is available on the Royal Mint website: www.royalmint.gov.uk
The Royal Mint has a history dating back over 1000 years. By the late 13th century the organisation was based in the Tower of London, and remained there for over 500 years. In 1810 the Mint moved out of the Tower to premises on London’s Tower Hill. In 1967 the building of a new Mint began on its current site in Llantrisant, South Wales.
There were estimated to be 27. 9 billion United Kingdom coins in circulation at 31 March 2008, with a total face value of £3. 6 billion – all manufactured by the Royal Mint.
1. 3 billion United Kingdom coins were issued during 2007-08.
Of the higher denomination coins, it is the 20p piece that is most in demand – with more than 2. 3 billion now in circulation.
Commemorative coins scheduled for issue in 2008 include:
–A crown piece to celebrate the 60th birthday of the Prince of Wales.
–A crown piece to celebrate the 450th anniversary of the accession of Elizabeth I.
–A £2 coin to mark the 100th anniversary of the London Olympic Games in 1908.
On 31 March 2008, the Royal Mint had 765 employees (2007: 762).
The responsible Minister for the Royal Mint is the Chancellor of the Exchequer who is, ex officio, Master of the Royal Mint. He has designated the Exchequer Secretary to assist him in the discharge of these responsibilities.
For further details please contact the Royal Mint Press Office on 020 7255 5478.
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About the Royal Mint
The Royal Mint is a department of government and its primary responsibility remains the provision of the United Kingdom coinage. Its reputation, however, extends beyond this and internationally it has a reputation for making some fascinating coins for over 100 countries.
The history of the Royal Mint itself stretches back over 1100 years. There is an unbroken link from the scattered workshops of the moneyers of Anglo-Saxon London to a single mint within the Tower of London, from a purpose-built premises at Tower Hill to the huge modern coining plant in South Wales.
In April 1975 the Mint was established as a Government Trading Fund, operationally very similar to a government-owned company.