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.”