Translation firm sees sales increase after investment

● Lingo24 reports 8% total income jump during 2017

Edinburgh tech-enabled translation firm Lingo24 has today revealed that it has become the UK’S third-largest private company of its kind and expects to return to profitability in 2018 after seeing income jump last year.

The firm, whose clients include Brewdog, Hunter Boots and Adidas, said overall sales were up by 8 per cent to £9.5 million, with reported sales growth of about 30 per cent in its key e-commerce business and growth of 16 per cent in larger accounts in the year, driven by new business of £1.3m.

Lingo24 is forecasting a return to “significant” profitability this year after more than three years of major investment in its technology, senior management and sales teams.

It combines strategic consultancy, proprietary technology and translation services, and 70 per cent of revenue now comes from its top 30 accounts (up from 53 per cent in 2015), who are the main users of this broader offering. Average annual spend among the top 30 accounts has jumped by more than 60 per cent between 2015 and 2017.

Lingo24’s Christian Arno, who founded the firm in Aberdeen in 2001, said: “These results reflect a huge amount of effort to transform our business into a serious partner to our clients. And to many of our customers,forwhomamazon is both an opportunity and a threat, there’s an increased sense of urgency to translating better.

“We’re now able to advise on best practice in technology selection and implementation in areas adjacent to translation, and support our customers as they build global teams to accelerate growth through global content.”

Thetranslationfirmalsosaid its software has matured to the extent that it can license it for external use, with its machine translation team implementing new developments in this areatoimprovetheproductivity of professional translators.

It also said its consultancy offering allows it to identify and help address more strategic challenges as its customers translate more.

Lingo24 announced in October the opening of a sixth overseas office in Amsterdam, and this is showing early promise, according to Arno. “Many international companies are locating their European e-commerce operations in Amsterdam, and I believe the uncertainty around Brexit has madesomecompanieschoose there when the UK could have been an option.”

The firm had previously expected to break the £10m revenue barrier in 2017. Buccleuch Property has extended its commercial property portfolio in Edinburgh by acquiring four industrial units in West Telferton for £2.1 million, representing a net initial yield of 7.25 per cent. They add to properties in the area already owned by the firm, which is investing heavily to provide high-quality industrial properties in the Scottish capital. Buccleuch Property director Philip Eves said: “We continue to look for new investment and development opportunities.”