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  • The Royal Mint has announced a pre-tax profit of £18 million for year ending 31st March 2022, up from £12.4 million in 2020-21
  • Revenue increased to £1.4 billion (2020–21: £1.1 billion) as sales of precious metals grew in the UK, US and Europe
  • As part of a five year growth plan, The Royal Mint is pioneering new ways to recover precious metals from electronic waste, with a multimillion pound factory set to open in 2023
  • In recognition of its record performance employees were awarded a ‘profit share’ payment of £4943 each

The Royal Mint has announced a pre-tax profit of £18 million for the year ending 31st March 2022 – the largest profit since vesting as a Limited company in 2010.

The milestone result marks the end of a three year business transformation strategy led by Chief Executive Anne Jessopp. It has seen the UK’s oldest manufacturer successfully evolve into a consumer brand, expanding into precious metals investment products, the sale of historic coins, jewellery and luxury collectibles. 

In total, The Royal Mint delivered revenue of £1.4 billion in the year (up from £1.1 billion in 2020-21). Revenue in the US increased by 62% as the sale of precious metals and commemorative coins grew .It is the second consecutive year that The Royal Mint’s profit has been driven entirely by its consumer facing divisions as the use of circulating coin declines – helping to safeguard the business and employment for the future.

As part of a new five year strategy to continue to grow the business, The Royal Mint has committed to becoming a leader in sustainable precious metals. In 2023 it will open a multimillion pound plant to recover gold from UK electronic waste. The pioneering facility will use patented chemistry to recover gold and other metals from circuit boards, generating hundreds of kilograms of precious metals per annum for The Royal Mint.

During the year, The Royal Mint saw record numbers of investors hedge their portfolios with physical precious metals, whilst also attracting new customers through its’ digital savings accounts and introducing a range of Diwali inspired gold bars.

Performance highlights for year ending 31st March 2022: 

  • The Royal Mint has launched a new five year plan to continue to grow the business, focused on its expertise in precious metals, safeguarding British craftsmanship and championing sustainability
  • Over the last three years, The Royal Mint’s Precious Metals division has grown to account for almost half of total profitability. In the financial year 2021–22, its contribution to operating profit was £20.3 million (2020-21: £15.4 million)
  • The company’s record financial performance triggered a ‘profit share’ payment for employees, resulting in a one off payment of £4,943 to employees. It was accompanied by a 4.5% annual pay increase
  • The Royal Mint is owned by His Majesty’s Treasury, and will pay a record dividend payment of £5 million for the year ending 31st March 2022
  • A new auction programme was launched to offer rare and historic numismatic works of art. An auction of unique ‘trial pieces’ used in coin production saw a total hammer price in excess of £370,000.
  • To mark Her Late Majesty the Queen’s Platinum Jubilee, The Royal Mint was commissioned by a private collector to make the largest coin in its history – a 15kg fine gold ‘Masterwork’ which took over 400 hours to craft.
  • The Royal Mint also supported the Queen’s Green Canopy - donating 7,000 Platinum Jubilee coins to schoolchildren achieving their Young Forestry Award
  • During the year The Royal Mint made 339 million circulating coins for the UK, and 1.5 billion coins and blanks for 22 countries worldwide

Graham Love, Chairman of The Royal Mint, said:It is a rare privilege to see a business transform, and an even rarer privilege to be part of a team that transforms at the scale and speed of The Royal Mint.

“We are building from a stronger financial base than ever – with a portfolio of established businesses alongside promising new ventures. We have unveiled a new five-year plan which will see us pioneer new ways to provide sustainable precious metals, champion British craftsmanship and grow the appeal and value of The Royal Mint for future generations.”

Anne Jessopp, Chief Executive of The Royal Mint, said: Over the last three years we have embarked on an ambitious plan to transform The Royal Mint for the future. I am so proud of what we have achieved, and the new chapter that has opened up for an 1,100 year old business.

“The next five years will focus on what makes The Royal Mint unique – our commitment to British Craftsmanship, expertise in precious metals and 1,100 years of heritage. We’re opening a new factory to recover gold from electronic waste, expanding into the luxury market with jewellery, and continuing to grow our consumer businesses internationally.”

 

The Royal Mint Group financial results summary [1]

 

 

2021-22

 

2020–21

 

£m

£m

Revenue

 

 

Currency

64.1

93.0

Consumer (excl. Precious Metals)

122.8

112.6

Precious Metals

1,216.5

843.8

Other

0.1

7.5

Total revenue

1,403.5

1,056.9

 

 

 

Operating profit/(loss)

 

 

Currency

(4.5)

(1.4)

Consumer (excl. Precious Metals)

26.9

21.3

Precious Metals

20.3

15.4

New Businesses

(2.7)

(1.6)

Central overheads

(21.9)

(20.9)

RM Wynt

(0.1)

(0.1)

RM Experience

0.1

-

Adjusted Operating profit

18.1

12.7

IFRS 9 related adjustments (note 5)

Exceptional items (note 5)

0.3

(0.4)

0.8

(0.8)

Operating profit

18.0

12.7

Share of associate

0.6

0.6

Net finance cost

(0.6)

(0.9)

Profit before tax

18.0

12.4

 

 

Ends

 

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.

[1] The Consumer division comprises Commemorative Coin, Precious Metals, Collector Services and The Royal Mint Experience, operating in the UK and internationally. For segmental reporting purposes, the Precious Metals business is reported independent of the rest of the Consumer division.

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