Gold shines for The Royal Mint as it reports a £12.7 million operating profit
- The Royal Mint delivers record profit across its consumer division as precious metals investment and ‘Masterwork’ coins attract new customers
- Digital saving accounts led to a 430% increase in millennials investing in gold
- Coins celebrating British Music Legends help to grow sales in the US and Asia
The Royal Mint has announced its financial results for the year ending 31st March, 2021, achieving record profit across its Consumer division as sales of gold and silver double, millennials flock to new digital savings accounts, and larger ‘Masterwork’ coins attract new customers.
The Royal Mint is famous for making coins, but as cash use reduces it has evolved to focus on two core areas; Currency and Consumer. Record performance in its Consumer division has seen The Royal Mint deliver an operating profit of £12.7 million (£1.1 million in 2019-20), and grow revenues to £1.1 billion (£568.5 million in 2019-20).
Performance during the year was driven by strong demand for precious metals investment, sales of historic coins and exclusive ‘Masterwork’ pieces. Popular culture series such as Music Legends – honouring David Bowie and Sir Elton John - led to record international sales, particularly in the US and Asia.
Key achievements in the financial year 2020-21:
- The creation of bespoke ‘Masterwork’ and limited edition coins appealed to customers who value exclusivity and art that holds its value. During the year this included a bespoke 9.5kg gold coin to mark the Queen’s 95th and a ‘Great Engravers’ series which sold out in 30 minutes.
- Whilst global demand for Precious Metals investment was heightened by the pandemic, The Royal Mint outperformed competitors – growing its market share and attracting over 25,000 new customers
- New digital savings platforms attracted new customers to precious metals investment. The Royal Mint saw a 430% increase in millennials investing via DigiGold during the financial year.
- The Royal Mint contributed to the fight against coronavirus by producing nearly 2 million visors for the NHS at cost price, and became one of the first UK companies to sign up to the Kickstart scheme
- A new 50 pence celebrating ‘Diversity Built Britain’ entered circulation, and was accompanied by a Black History Month education pack which was issued to every primary school in England and Wales
Graham Love, Chairman of The Royal Mint, said: “Despite the significant headwinds of the past year the team have delivered an outstanding result – achieving record financial performance, safeguarding employees and making medical visors for the NHS. The pandemic accelerated the diversification of The Royal Mint, and the strategies already underway in the Consumer division allowed it to flourish and offset declines in the Currency business.
"Underpinning these strong financial results is a continued commitment to safeguarding the production of UK circulating coins, becoming a leader in ethically sourced precious metals, and a focus on providing sustainable employment at our manufacturing site in South Wales.”
Anne Jessopp, Chief Executive of The Royal Mint, said: “As spending habits change, we set out to reinvent The Royal Mint and secure our long term future as a British maker. By purposefully expanding into areas which complement our heritage we have been able to attract thousands of customers to precious metals, showcase British craftsmanship and achieve record revenues. We might be 1,100 years old, but we are firmly focused on the future.
“Equally as important, we have kept our people safe, supported our community and contributed to the fight against coronavirus. Over the financial year we made 1.9 million medical visors for the NHS, introduced the ‘Diversity built Britain’ coin and became one of the first UK companies to sign up to the government’s Kickstart scheme.”
The Royal Mint Group financial results summary
| 2020–21 | 2019–20 | |
|---|---|---|
| £m | £m | |
| Revenue | ||
| Currency | ||
| UK | 18.3 | 24.2 |
| Overseas | 74.7 | 109.8 |
| Total Currency | 93.0 | 134.0 |
| Consumer | 112.6 | 76.6 |
| Precious Metals | 843.8 | 356.9 |
| Other | 7.5 | 1.0 |
| Total | 1,056.9 | 568.5 |
| Operating (loss) / profit | ||
| Currency | (1.4) | 3.4 |
| Consumer | 21.3 | 13.6 |
| Precious Metals | 15.4 | 3.9 |
| New Businesses | (1.6) | (1.0) |
| Central overheads | (20.9) | (18.6) |
| Total Royal Mint Limited | 12.8 | 1.3 |
| RM Wynt Limited | (0.1) | (0.1) |
| RM Assets Limited | - | (0.7) |
| RM Experience Limited | - | 0.1 |
| Operating profit before IFRS 9-related adjustments andexceptional items | 12.7 | 0.6 |
| IFRS 9 related adjustments (note 5) Exceptional items (note 5) |
0.8 (0.8) |
0.8 (0.3) |
| Operating profit | 12.7 | 1.1 |
| Sovereign Rarities Limited | 0.6 | 0.2 |
| Net finance cost | (0.9) | (1.5) |
| Profit / (loss) before tax | 12.4 | (0.2) |
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About The Royal Mint
With a history spanning more than 1,100 years, The Royal Mint is Britain’s oldest companies and the original maker of UK coins. Today The Royal Mint is a premium British maker, providing carefully crafted coins and precious metal products for the UK and overseas. Based in Llantrisant, South Wales it has three main focuses as a business: Currency, Consumer (collectable and rare, historic coins) and precious metals investment.