Administration and expenditure of the Chancellor's departments, 2008-09 - Treasury Contents

Examination of Witnesses (Questions 77 - 79)



  Q77  Chairman: Can I welcome you both. Could you introduce yourselves formally, please?

  Mr Stafford: Good afternoon. I am Andrew Stafford, the Chief Executive of the Royal Mint. I have at this moment to make an apology. Mike Davies is the Chairman, but unfortunately he has been unable to make the Committee hearing because the train service from Coventry was cancelled due to a fatality on the line. We have advised that Adam Lawrence, the Finance Director, was the other witness who was attending, and Adam has made it, but Mike Davies will not be attending and he will be writing to you to send his personal apologies, but it was unavoidable.

  Q78  Chairman: Okay. Your profits are down and your rate of return is down. Why is that?

  Mr Stafford: The answer is that our turnover grew year on year—

  Q79  Chairman: No, the profit I asked you about.

  Mr Stafford: Forgive me, I am just about to say that the mix of our business did change quite substantially year on year, particularly in the commemorative coin business where a lot of the turnover in the last twelve months was from bullion coin as people sought to buy more gold coins at a much lower margin than our collector coins. So our growth in turnover was not comparable with the growth in margins from our commemorative coin business. Therefore, we have seen a reduction in our profitability of the percentage of sales but our return on average capital employed, which is our key measure, clearly performed very well.

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