(Kitco News) The Royal Mint posted record profits in its latest financial year, which ended March 31, as investors diversified their portfolios with precious metals.
Britain’s oldest company and official maker of British coins reported sales of more than £1.2 billion ($1.33 billion) in the financial year, with profits before taxes of £18 million ($20.4 million).
It was a £6 million ($6.8 million) increase in profit from a year ago, marking the largest sum since becoming a limited liability company in 2010.
Precious metals accounted for 86.7% of Mint’s total revenue.
In the United States, revenue rose 62% “as the sale of precious metals and commemorative coins increased,” according to the press release issued Thursday.
Sales also surged in the UK and Europe, with the consumer division seeing the strongest demand for historical coins and precious metal bullion products.
“This is the second year in a row that the Royal Mint’s profits have been driven entirely by its consumer-facing divisions as the use of circulating coins declines, helping to protect the business and jobs for the future,” the Mint said.
The Royal Mint said it would pay a record dividend payment of £5 million ($5.7 million) for the year ending March 31, 2022.
“This landmark result marks the end of a three-year business transformation strategy led by Managing Director Anne Jessopp. It has seen the UK’s oldest manufacturer successfully evolve into a consumer brand, expand into products investment in precious metals, the sale of historic coins, jewelry and luxury collectibles,” the Mint said.
The state-owned company has also been responsible for minting the country’s coins since the reign of King Alfred the Great over 1,100 years ago. Today it also sells precious metals, historical coins, jewelry and luxury collectibles.
During the last financial year, the Mint produced 339 million coins for the United Kingdom and 1.5 billion coins and blanks for 22 other countries.
The Royal Mint also plans to open a new factory in 2023 which will focus on recovering precious metals from old mobile phones and laptops.
“We are building from a stronger financial foundation than ever before – with a portfolio of established businesses alongside promising new ventures. We have unveiled a new five-year plan that will see us discover new ways to deliver sustainable precious metals , to champion British craftsmanship and grow.” the appeal and value of the Royal Mint for future generations,” said Graham Love, Chairman of the Royal Mint.
Following the death of Queen Elizabeth in September, the Mint announced that it was producing coins bearing the likeness of King Charles III.
“The first coins bearing the likeness of His Majesty King Charles III will come into circulation in accordance with the request of banks and post offices. This means that the coinage of King Charles III and Queen Elizabeth II will circulate in the United Kingdom for many years to come,” Royal Mint chief executive Anne Jessopp said.
In the meantime, all British coins bearing the likeness of Her Majesty Queen Elizabeth II will be legal tender and in active circulation. “This ensures a smooth transition, with minimal environmental impact and cost,” the Mint added.
The first coins to feature the King’s portrait will be a special £5 and 50p crown, which will also commemorate the life and legacy of the late Her Majesty Queen Elizabeth II. The new 50p coin will begin circulating in the coming months.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.