The Royal Mint Limited has today announced its annual results for 2014-2015, reflecting the fact that Britain’s oldest manufacturer has enjoyed a successful year, generating £259.6m (US$402.38m) revenue (2013-14: £314.9m / $488.1m) and returning an operating profit of £11.4m ($17.67m) (2013-14: £6.7m / $10.39m).
A key ministerial target to achieve 10% return on average capital employed was exceeded as the organisation achieved 17.0% ROACE, an increase on the previous year’s 10.2%, and all other ministerial targets were achieved.
Circulating Coin sales increased by 5% to £106.0m ($164.3m) (2013-14: £101.2m / $156.86) and operating profit rose 16% to £15.8m ($24.49m) (2013-14: £13.6m / $21.08m).
The business continued to see strong demand from UK banks and the Post Office for United Kingdom coinage with 2.4 billion coins supplied during the year (2013-14: 2.0 billion coins).
Overseas demand continued to grow and more than 2.2 billion coins and blanks were manufactured for 29 different overseas countries over the 12-month period (2013-14: 2.0 billion coins and blanks to 25 countries). The Royal Mint also secured a number of contracts with overseas countries which involve transitioning denominations from banknotes into coins.
The alloy recovery programme to replace old UK cupro-nickel 5p and 10p coins with new aRMour™ nickel-plated steel coins continues to deliver dividends and has returned over £16m ($24.8m) worth of legacy metal to Her Majesty’s Treasury, bringing the total returned over the duration of the programme to £35m ($54.25m).
2014-15 has seen considerable progress in achieving and delivering key long-term strategies for Circulating Coin. In March 2015, the Chancellor of the Exchequer, Rt Hon. George Osborne MP, presented the final design of the new £1 coin which is due to start being manufactured in 2015-16 and intended to enter circulation in 2017.
This new coin cements The Royal Mint’s position as the world-leaders in coin security. It will incorporate a number of overt and covert coin security features, including our new covert high security feature, which was developed by The Royal Mint’s in-house Research & Development team.
Commemorative Coin, Bullion and Medals
The organisation’s Commemorative Coin business experienced another strong year with operating profit rising 6% to £9.9m ($15.35m) (2013-14: £9.3m / $14.42m).
Results were boosted by a favourable mix of anniversary and product themes, as well as the introduction of some innovative products including the UK’s smallest coin – a fortieth-ounce gold Proof coin depicting Britannia only 8mm in diameter.
The introduction of a face value £100 coin featuring Big Ben sold out in a number of days and popular themes such as the 800th anniversary of the Magna Carta, the anniversary of the outbreak of the First World War and 50 years since the death of Sir Winston Churchill complemented a successful product offering.
Whilst the bullion business faced difficult global market conditions during 2014-15, a number of important strategic steps were made during the year. In September 2014 The Royal Mint successfully launched its online bullion platform www.royalmintbullion.com and expanded the range on offer to consumers for delivery or storage in The Vault™. The historic Royal Mint Refinery brand was also revived to offer gold and silver minted bars alongside bullion coins.
The Royal Mint’s digital business grew by 112% in 2014-15 over the previous year as part of the continued effort to modernise and move more of the business online.
Adam Lawrence, Chief Executive of The Royal Mint, said:
“We are pleased to report that for the second year in a row we have exceeded the Ministerial target of a 10% return on average capital employed, and achieved all the other Ministerial targets. Over the last year The Royal Mint has made large steps forward strategically as we continue towards our vision ‘To be proud to be recognised as the World’s Best Mint’.
“Towards the end of the fiscal year we commenced the preparatory works for the construction of our exciting new Royal Mint Visitor Centre which we expect to open during 2016, and will give visitors the unique opportunity to go behind the scenes and discover for themselves the people and processes that put the pounds and pennies in their pockets.
“Of course, the biggest news for The Royal Mint this financial year was the unveiling of a new coinage portrait of Her Majesty The Queen – only the fifth definitive portrait of The Queen to appear on our circulating coins since her accession to the throne in 1952. The fact that it has been designed by one of The Royal Mint’s own engravers, Jody Clark, for the first time in over 100 years makes it even more special.”