12th June 2007
The Royal Mint's results for the 2006-07 financial year published today (12 June 2007) showed an operating profit before exceptional items of £8.7 million (2005-06: £1.1 million), its highest level for nine years.
Retained profit for the year was £1.2 million compared to a loss of £1.6 million in 2005-06.This result was achieved after charging £6.4 million of exceptional items, which related to the implementation of the business improvement programme.
Receiving the annual report, Financial Secretary to the Treasury, John Healey MP said: "This report records the impressive turn around in performance that the Royal Mint has delivered over the past two years.In particular I welcome that the Royal Mint has not just met, but exceeded the financial target I set.These achievements demonstrate the Royal Mint's positive response to the challenges it has faced, and are a testament to the dedication and effort of the Royal Mint's staff and management team."
In his statement, Chairman Mike Davies said that the Royal Mint had achieved its ministerial financial target for the year."The twelve months covered by this report have seen substantial developments on three fronts.The Royal Mint has reported a significant improvement in financial performance, there has been structural change in the way the business operates, and a number of changes amongst its senior management have been made."
During the year, the Royal Mint launched the business improvement programme, an initiative aimed at modernising the organisation structure and reviewing work methods.Progress has been swift and productive and has resulted in the introduction of more efficient working practices and lower operating costs. As a result seventy-two permanent staff are leaving the Royal Mint either through early retirement or voluntary redundancy.
David Barrass, Chief Executive said: "I would like to extend to every employee my sincere thanks for their resolve and commitment through a challenging period.An important step has at last been taken along the road to recovery, but one year of good results should not deflect attention away from the scale of progress that still has to be made to secure sustained profitability."
The Royal Mint's prime responsibility to supply the United Kingdom with circulating coinage was met successfully.2006- 2007 saw a 12% increase in demand to 1.6billion coins, despite the recent trend which had suggested demand was levelling-off.The enhanced flexibility within the organisation meant the additional volumes were accommodated effectively.
The Collector Coin business had a very successful year with significant growth in both the business to customer and wholesale market areas.Profitability increased by 129% over 2005-06, generating a £9.7 million contribution compared to £4.3 million in 2005-06.
The Circulating Coin side of the business also improved significantly with a contribution of £7.3 million, up 78% on the 2005-06 results.
Mr Barrass concluded: "Looking ahead to the next financial year, the Circulating Coin market looks buoyant and order enquiry levels are healthy.We expect further growth in the Collector Coin market.The next twelve months will see the foundations of a new vision being laid and making this a reality will be the first step towards building a stronger and sustainable long-term future for the Royal Mint."
|