Lego Builds as it Defies the Recession

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The toymaker revealed stunning half-year results in the UK and beyond.

Versatile children’s toy Lego has revealed that it is a recession-beater today after announcing a 20 per cent rise in UK sales.

The Danish toy maker, famed for its vast range of colourful building blocks has now become Britain’s third largest toy manufacturer. It revealed improved sales in all of its lines – although bestsellers like the Lego City and Lego Star Wars sets remained on top.

The new range of Lego Power Miners has got off to a flying start, the company said, with sales well ahead of expectations.

Lego UK managing director Marko Ilincic commented: “The continued strong growth in our classic product lines is particularly encouraging and suggests a demand among consumers for trusted quality, particularly in the current economic climate.” Mr Ilincic added that Lego was the only top five toy manufacturer in Britain to show sales growth in the first half of the year, with UK turnover in the six months to June up 34 per cent compared to the same period in 2008.

The success story continued around the world. Lego’s pre-tax profits for the first half of 2009 increased by 65 per cent compared to the previous year to £99.5 million and the volume of sales rose 23 per cent to £469 million. Lego said that the improved performance was at its best in North America and East and Central Europe.

The Lego success story began in a small carpenter’s workshop in 1932. Founder Ole Kirk Christiansen combined the first two letters of the Danish words “leg godt” meaning “play well”.

The firm now plans to increase world manufacturing capacity, with extra moulding machines installed in Mexico, Hungary and Denmark.