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Lego is continuing to build its empire.

The Danish toymaker said that revenues hit a record high last year, rising 6 per cent to DKr37.9bn (£4.4bn) – the highest ever annual level recorded in its 85-year history.

Excluding the impact of currency effects, revenues were up 5.5 per cent.

Profits were also higher, with operating profit up 1.7 per cent to DKr12.4bn and net profit up 2.2 per cent to DKr9.4bn.

The toy brick manufacturer said that digital products would be a key focus this year, as the company ramps up its efforts to engage children in a digital forum. For example Lego Boost, a product that combines coding and traditional building, will be released in the second half of the year.

However, the US market was a weaker area for Lego, with sales flat in 2016.

Lego chief executive Bali Padda said:

We are satisfied with our performance in 2016. We had a strong first half of the year, while consumer sales growth in the second half was at more sustainable levels than previous years. We were encouraged by our performance in mature markets in Europe and continue to see strong potential in China, which represents an attractive growth opportunity.

In the US, consumer sales were flat year-on-year despite a significant increase in marketing spend in the second half [of the] year. We will continue to work closely with our retail partners to identify new opportunities to innovate, drive growth and engage children in this important market.

Lego recently said it would expand its London office, in a move that was seen as a vote of confidence in the UK economy despite the vote to quit the European Union.

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