® ANNUAL REPORT 2020– 2021 The Royal Mint Limited ANNUAL REPORT 2020–21 ® DIRECTORS EXECUTIVE MANAGEMENT TEAM Graham Love* Anne Jessopp CHAIRMAN CHIEF EXECUTIVE Anne Jessopp Andrew Mills CHIEF EXECUTIVE DIRECTOR OF CURRENCY Nicola Howell Nicola Howell CHIEF COMMERCIAL OFFICER CHIEF COMMERCIAL OFFICER Andrew Mills Leighton John DIRECTOR OF CURRENCY DIRECTOR OF OPERATIONS Huw Lewis Huw Lewis CHIEF FINANCIAL OFFICER CHIEF FINANCIAL OFFICER Xenia Carr-Griffiths* Sarah Bradley DIRECTOR OF HR AND SHE Cheryl Toner* Sean Millard Michael Clayforth-Carr* CHIEF GROWTH OFFICER William Spencer* Shimi Shah* Jamie Carter* Representative of the Royal Mint Trading Fund and HM Treasury as shareholder *Non-Executive Directors COMPANY SECRETARY Independent auditors PricewaterhouseCoopers LLP Christopher Inson Internal auditor KPMG LLP Company registration number: 6964873 Registered office: The Royal Mint Limited, Llantrisant CF72 8YT The Royal Mint Limited Email: [email protected] CONSOLIDATED ANNUAL REPORT FOR THE Website: royalmint.com YEAR ENDED 31 MARCH 2021 Company registration number: 6964873 2 THE ROYAL MINT LIMITED | ANNUAL REPORT 2019–20 THE ROYAL MINT LIMITED | ANNUAL REPORT 2020–21 3 Certifications Contents 06 Chairman’s Statement IS0 9001 – QUALITY MANAGEMENT IS0 9001 is a certified Quality Management System (QMS) for organisations 08 Chief Executive’s Report who have proven their ability to consistently provide products and services that meet the needs of their customers and other relevant stakeholders. 10 Strategic Report Certificate number FM 13962 33 Directors’ Report IS0 14001 – ENVIRONMENTAL MANAGEMENT The principal management system standard which specifies the requirements for CERTIFIED the formulation and maintenance of an Environmental Management System. 35 Group Financial Summary Certificate number EMS 84940 38 Sustainability Report IS0 50001 – ENERGY MANAGEMENT The standard specifies the requirements for establishing, implementing, 42 Corporate Governance maintaining and improving an energy management system. Certificate number EnMS 719847 48 Remuneration Report 52 Independent Auditors’ Report to the members Memberships 56 Consolidated Income Statement 58 Company Income Statement LBMA 60 Consolidated and Company Statements of Comprehensive Income The London Bullion Metals Association is an international trade association, representing the London market for gold and silver bullion. 61 Consolidated Statement of Changes in Equity LPPM 61 Company Statement of Changes in Equity The London Platinum and Palladium Market is a trade association that acts as the co-ordinator for activities conducted on behalf of its members and other 62 Consolidated and Company Statements of Financial Position participants in the London market. 63 Consolidated and Company Statements of Cash Flows 64 Notes to the Financial Statements 4 THE ROYAL MINT LIMITED | ANNUAL REPORT 2020–21 Chairman's Statement The past year has been an extraordinarily challenging one for the world as a whole, and The Royal Mint has been no exception. Our staff, our customers, our suppliers and partners have all faced a wide variety of personal and business challenges, and we have felt a strong sense of responsibility in supporting all of them where we could through this difficult period. Many of our staff have been working from home, or have had to adjust to different working practices in order to stay safe whilst continuing to serve our customers to the best of our abilities. I am grateful to all of them for the dedication and resilience they have shown during this testing period. I am also pleased to report that, despite the We had a number of changes to the Board during significant headwinds of the past year, particularly the year. David Morgan retired by rotation after in our Currency division, our management team six years on the board in September 2020, and I has done an outstanding job of accelerating the should like to thank David for the outstanding diversification strategies we had already initiated. contribution he made to The Royal Mint’s This meant that, not only were we able to survive development during that time - particularly without requesting any Government assistance, but in his role as chair of the audit committee. In overall we delivered one of our best ever trading May 2020, we were delighted to welcome Bill results – exceeding one billion pounds in revenue Spencer to the board. Bill has had a distinguished for the first time. career in business and as a senior member of the accountancy profession, and he takes over from Underpinning these strong financial results is David as chair of the audit committee. In March a 3-year plan, which acknowledges that, whilst 2021 we also welcomed Shimi Shah as a new our historic core mission remains to ensure non-executive director. Shimi brings a wealth of the availability of circulating UK coinage, the valuable international business experience, and will pandemic has accelerated the long term trend also be the board lead on diversity and inclusion. away from the use of cash. It therefore requires a In addition, Huw Lewis replaced Martin McDade significant push into adjacent areas where our skills as Finance Director in September 2020. I am in working with precious metals can be deployed fortunate to be supported by an outstanding group to bring new products to market, or our existing of colleagues, both on the board and across The products to new markets. Early achievements Royal Mint as a whole. ... we delivered one include a significant increase in our international sales of commemorative coins, particularly in the Lastly, I should like to pay tribute to our many of our best ever USA, and a major step up in volumes through our customers who have supported us with their expanded range of precious metals business through these challenging times, and trading results – investment products. allowed us to continue to build on the wonderful heritage of The Royal Mint, ‘The Original Maker’ exceeding one billion As a Board, we take our Environmental, Social and Governance responsibilities very seriously. In Graham Love addition to generating our own power from our pounds in revenue CHAIRMAN wind turbine and photovoltaic plant, we constantly for the first time. monitor the environmental impact of our processes to ensure these are as low as possible. We also have a range of local outreach and charitable programmes, and we are particularly proud to have contributed to the fight against coronavirus by producing nearly 2 million visors for the NHS, at cost price. 6 THE ROYAL MINT LIMITED | ANNUAL REPORT 2020–21 THE ROYAL MINT LIMITED | ANNUAL REPORT 2020–21 7 over 30 young people through the Government’s art which hold their value. This has become firms remains one of the most progressive on ‘Kickstart’ scheme, and launched ‘Mintlings’ – a a growing area of our business and over the this front, with a pay gap marginally in favour free education and learning resource for children. course of the year we made Masterworks to of women and with women represented at all Chief Executive's mark the Queen’s 95th birthday and saw the levels of the business. The year was challenging for all our teams as they completion of the Queen’s Beasts range. • In March 2021 we unveiled the first depiction coped with the personal impact of the coronavirus. • Continued geopolitical uncertainty in the of Britannia as a woman of colour on a coin We made it a priority to provide support for all year led to a buoyant precious metals market, as part of a new four-year series that will see Report our people – focusing on wellbeing and creating an however our division outperformed our the 2,000-year-old embodiment of Britain environment where anyone could ask for help with competitors – growing our market share and reimagined to reflect a diverse nation. their mental or physical health. Our reinvention doubling sales of gold and silver. Our unique • We created a dedicated diversity and inclusion historic coin division. In addition, we significantly and the strong performance of 2020-21 would REINVENTING position in the market means we attracted over working group within the business – looking grew our share of the precious metals investment not have been possible without the hard work THE ROYAL MINT 26,000 new customers, and were able to work at how we present ourselves externally, support market, launched a compelling new brand and dedication of every single member of The In 2018 we launched our ambition to “reinvent with our supply chain to continue to offer gold for employees, achieve greater community proposition, and fulfilled our core objective of Royal Mint, and our extended team including The Royal Mint for the twenty first century”. and silver when they were in short supply. engagement and product development. producing coins for the UK public. suppliers. It is a privilege to be leading such a great The strategy focused on managing the impact of • The Royal Mint is the voice of authority on • We created a new non-executive director role organisation and my sincere thanks goes to declining cash use, growing our Consumer division UK coins, and the home of precious metals. to specifically support us on our Diversity and This performance has seen The Royal Mint return every individual. As lockdown restricted our ability to meet and exploring new profitable ventures. to profitability for the financial year 2020-21. We Inclusion journey. I’m delighted that Shimi customers in person to showcase this expertise, delivered an operating profit of £12.7 million (£1.1 THE ORIGINAL MAKER Shah took up the position in March 2021. Three years on, I am proud to say that we have we invested in new technology to connect million in 2019-20), grew our revenues to £1.1 successfully reinvented The Royal Mint – quicker A key strand of our reinvention strategy was to with them directly via our online portal. We MAKING OUR FUTURE billion (£568.5 million in 2019-20).