Author Topic: Royal Mint Sees Big Rise in Profits  (Read 1785 times)

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Offline Bimat

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Royal Mint Sees Big Rise in Profits
« on: July 26, 2016, 11:04:41 AM »
Royal Mint sees big rise in profits to £13.1m

The Royal Mint has announced a big rise in profits to £13.1m for 2015/16.

The mint, which employs around 900 people at Llantrisant, Rhondda Cynon Taff, saw its profits increase from £11.4m the year before.

Its revenue rose 39% to £360.6m and bullion sales "contributed largely" to the success, according to chief executive Adam Lawrence.

The mint is producing 1.4 billion new 12-sided pound coins for next year.

The company's circulating coin sales also grew 17% to £124m over the period, with demand from the UK market remaining "strong".

But the number of coins manufactured dropped from 4.6 billion for 30 countries in 2014/15, to 4.4 billion for 40 countries throughout 2015/16.

In May, the company launched a new visitor attraction, The Royal Mint Experience, which includes a factory tour explaining how the coins are made.

Source: BBC
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Offline Figleaf

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Re: Royal Mint Sees Big Rise in Profits
« Reply #1 on: July 26, 2016, 01:47:31 PM »
Such large shifts in profitability are common, especially for economic growth cycle driven companies.

What I find remarkable is that trinket sales (360 million) are three times as large as coin "sales" (120 million). If 75% of your turnover is fluff, are you still a mint? Or has the word "mint" degenerated into a generic name for scrap dealers specialised in overhyped struck roundels? As in e.g. Franklin "mint", Tower "mint", Royal Australian "mint", Valcambi "mint" and Pobjoy "mint".

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline SandyGuyUK

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Re: Royal Mint Sees Big Rise in Profits
« Reply #2 on: July 26, 2016, 08:10:33 PM »
What I found interesting to note in the report is the pictures (2 of them) of all of the new pound coins being produced showing them quite clearly dated as "2016".

Clearly with the Queen's advancing years, the Mint is not prepared to take the risk to produce 1.5 billion coins with the wrong date on them should HM decide to pre-decease their issue.  (This is similar to what some of the €uroland countries with monarchs did before the coins went "live" in 2002 - i.e. issuing coins dated 1999).
Ian
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Offline chrisild

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Re: Royal Mint Sees Big Rise in Profits
« Reply #3 on: July 27, 2016, 12:49:06 AM »
This is similar to what some of the €uroland countries with monarchs did before the coins went "live" in 2002 - i.e. issuing coins dated 1999

For the monarchies in the euro area that will have been relevant. The republics that made the same decision, however (Finland and France), had different reasons. ;)  Even though production began in 1998, some countries picked 1999 because that was when the euro was launched, while others picked 2002 because that was when the cash became legal tender.

In this case - the new £1 coin - it makes sense to use 2016 as the year on the first coins. After all, that is the production year. Even with a young king or queen it would be better to do that, I think.

Christian

Offline SandyGuyUK

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Re: Royal Mint Sees Big Rise in Profits
« Reply #4 on: July 27, 2016, 01:11:36 AM »
In this case - the new £1 coin - it makes sense to use 2016 as the year on the first coins. After all, that is the production year. Even with a young king or queen it would be better to do that, I think.

I don't disagree with you Christian.  What's interesting in the Royal Mint's approach this time is that this is (as far as I can ascertain) *not* what the Mint did back when the original round pound was introduced in 1983.  I seem to recall that that was issued in March/April time and given the number that must have been struck in readiness for its introduction, a goodly proportion of these must have been struck in 1982 and held in storage.

I wonder come March next year, whether there will be a mix of 2016 and 2017 coins in circulation or whether they will be mostly 2016 with a small number of 2017 (thinking back to the mintage figures for the 50p for 1969 and 1970).

Ian
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Offline eurocoin

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Re: Royal Mint Sees Big Rise in Profits
« Reply #5 on: August 01, 2016, 10:15:20 AM »
Mint of Austria now also published its annual report for 2015. They had one of the best years in the history of the company. Gold sales are up 45% and silver sales are 58% higher than in 2014. You can find it here (pdf download).

Offline chrisild

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Re: Royal Mint Sees Big Rise in Profits
« Reply #6 on: August 01, 2016, 03:32:41 PM »
Mint of Austria now also published its annual report for 2015. They had one of the best years in the history of the company.

True, the Austrian Mint definitely made more money last year. :) Certainly in terms of turnover but also with regard to the profit. Part of that increased profit however is due to a change in the law (see here, article in German).

According to the modified Coinage Act (Scheidemünzengesetz) the mint does not have to keep a reserve any more in case people turn in their coins and want paper money, or newer coins, for them. The Austrian government now takes care of that. This reserve (Rücklösungsrücklage) had a volume of about €400m. So yes, the mint's profit went up from €205m to almost €627m in 2015, but most of that has legal reasons so to say ...

Christian

Offline Alan71

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Re: Royal Mint Sees Big Rise in Profits
« Reply #7 on: August 01, 2016, 06:21:47 PM »
What I found interesting to note in the report is the pictures (2 of them) of all of the new pound coins being produced showing them quite clearly dated as "2016".

Clearly with the Queen's advancing years, the Mint is not prepared to take the risk to produce 1.5 billion coins with the wrong date on them should HM decide to pre-decease their issue.  (This is similar to what some of the €uroland countries with monarchs did before the coins went "live" in 2002 - i.e. issuing coins dated 1999).
Apparently there was similar concerns in the late 60s.  1/2p, 1p and 2p coins dated 1971 were struck from 1968 onwards (and even made available that year in those blue packs).  I seem to recall that in the 30 years thing where they can reveal certain documents not made public at the time after 30 years, it was mentioned that there were concerns about what they would do if the Queen died before 1971. 

There must have been similar issues with the introductions of the 20p, £1, small 5p, small 10p, small  50p and £2 in 1982, 1983, 1990, 1992 and 1997 respectively. These coins would each have been produced and stockpiled in the years leading up to their issue.  However, with the Queen now aged 90 it is perhaps sensible that they change that rule and issue the new £1 next year with this year's date on.  That's the most likely reason for the break with tradition.

Offline Bimat

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Royal Mint Sees Big Rise in Profits
« Reply #8 on: August 02, 2016, 06:25:23 PM »
What I found interesting to note in the report is the pictures (2 of them) of all of the new pound coins being produced showing them quite clearly dated as "2016".

That is known to most of us for quite some time now. ;)

http://www.worldofcoins.eu/forum/index.php/topic,26382.msg220839.html#msg220839

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.