Lego announces rise in profits

<p>Profits have risen sharply at Danish toymaker Lego.</p>

Profits rose sharply at Danish toy manufacturer Lego over the course of 2013, the company has announced in its latest financial results.

The firm revealed that profits for the 12-month period were nine per cent up on the previous year. In 2013, it made 6.12 billion kroner (£673 million) and this figure does not include the proceeds from the massively successful The Lego Movie.

Cinema fans have been flocking to see the film all over the world and it married critical success with topping box offices across the globe. A sequel to The Lego Movie has already been announced by Warner Bros and this is expected to be released in cinemas in 2017.

Lego has been seeking to diversify its offerings beyond the basic colourful building blocks it is known for and has launched a series of film tie-ins of late, including Harry Potter, Batman and Lord of the Rings video games.

The company, which is privately-held, only reports profits on an annual basis and revealed in a statement that it appointed more than 1,300 new members of staff in the last year.

"During the coming years the Lego Group expects to grow moderately ahead of the global toy market that is expected to grow low single digits," said Lego in its annual report.

Future films

But despite the overwhelming success of The Lego Movie, Lego chief executive Jorgen Vig Knudstorp  stated that the firm is not going to rush out countless new films in the coming years.

Speaking to BBC News, he said: "I don't think we'll see a huge tidal wave of Lego movies – I don't think it would be the right way to represent the brand.”

Lego is one of the best known companies from Denmark, but experienced a lull in the 2000s as children increasingly preferred to play with technological products rather than its basic building blocks.

However, Lego has its adult fans as well and among them are former England footballer David Beckham, who has said in interviews that playing with Lego helps him to relax.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.