The Royal Mint has today reported another profitable and successful year, demonstrating the commitment to long-term sustainable growth.
An operating profit before exceptional items and interest of £8.2 million (2007-08: £9.6m) was realised in spite of the challenging global economic environment, meaning the Royal Mint will pay a dividend of £4.0 million (2007-08: £3.9m) into the public purse. Sales increased to £159 million, an increase of 17% compared to last year, and this strong demand reflects the high quality of Royal Mint products.
The Circulating Coin business delivered its third consecutive year of increased profitability and an 8.8% growth in turnover to £93.2 million (2007-08: £85.0 million), which represents an outstanding achievement given the international recession.
The most significant development was undoubtedly the award of the contract to supply plated blanks to the Russian mints for the next five years. This comes on top of the ongoing work to supply the Egyptian Mint with coins and blanks for Egypt’s recoinage programme. The Royal Mint clearly remains extremely competitive in the global market and overseas coin and blanks contracts now account for over two-thirds of the Circulating Coin business’s activity.
The Commemorative Coin business likewise had a strong year, with turnover increasing by nearly 30% and delivering profits of £7.8 million. There was a marked increase in demand for bullion products in the second half of the year, possibly as investors turned to gold-based bullion products instead of traditional financial products.
The Commemorative Coin business is currently undergoing a transformation as the London 2012 Olympic Coin Programme gains momentum. In early 2009 the Royal Mint ran three competitions to find 29 new designs (one for each Olympic and Paralympic sport) for the 50p coin and was overwhelmed by the number of entries received. The phenomenal level of interest in the Olympics represents an excellent opportunity and it is anticipated that the London 2012 Olympic Coin Programme will be a significant revenue stream.
Mike Davies, Chairman of the Royal Mint, said:
"It is a very exciting time for the Royal Mint. Having built a successful and profitable business, the challenge for this year was to sustain our excellent recent performance and I am pleased this has been achieved.
Whilst the Royal Mint continues to meet its primary obligation of supplying the United Kingdom with circulating coins, Andrew and his team have also focused on improving the Royal Mint’s commercial operations, with the London 2012 Olympic Coin Programme being just one such example."
Andrew Stafford, Chief Executive of the Royal Mint, concluded:
"Royal Mint products are used by people not just in the UK but across the world every day in a way few other organisations can imagine.
"This has been another excellent year for the Royal Mint but we cannot afford to be complacent. The international downturn will pose challenges but we have a strong business and robust strategy in place to ensure this year’s success can be sustained into the future."
# # #
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.