The Royal Mint has reported record profits in the year to March as investors pile into gold (GC=F) in the midst of volatile markets.

Britain's oldest company and the official maker of UK coins, posted sales of more than £1.2bn ($1.33bn) during the period, with pre-tax profits of £18m.

This was a near £6m jump from the £12.4m profits reported last year, and its largest since becoming a limited company in 2010.

The company said the strong performance was boosted by its consumer facing division, including historic coins and precious metal investment products, which offset losses from its currency division.

It saw record numbers of traders hedge their portfolios with physical precious metals such as gold, silver, and platinum coins and bars. Precious metal accounted for around 86% of the firm’s total revenue in the last year, and almost half of its profits.

Gold is widely considered to be a safe-haven asset in times of economic trouble and during periods of high inflation as it offers long-term value.

The Royal Mint added that revenue in the US rose 62% over the 12 months thanks to demand for commemorative coins.

It comes as the UK has shifted to a cashless society over the last decade or so, with the use of coins in circulation falling sharply. The Royal Mint has since looked to become more of a consumer brand to counteract this change.

“It is a rare privilege to see a business transform and an even rarer privilege to be part of a team that transforms at the scale and speed of The Royal Mint,” Graham Love, chairman of The Royal Mint, said.

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“We are building from a stronger financial base than ever – with a portfolio of established businesses alongside promising new ventures.

“We have unveiled a new five-year plan which will see us pioneer new ways to provide sustainable precious metals, champion British craftsmanship and grow the appeal and value of The Royal Mint for future generations.”

Since the death of Queen Elizabeth in September, the company is now focused on making coins bearing the effigy of King Charles III.

New 50p coins will start being circulated from December, and from the start of next year, coins from the 1p to the £2 will be minted carrying the same image of King Charles.

The Royal Mint is also set to open a new factory next year where it will recycle discarded mobile phones and laptops to recover precious metals from circuit boards.

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