Early promise for Amsterdam office
Lingo24 returns to profit as business model evolves
Christian Arno: ‘Our business has changed beyond recognition’ (pic: contributed)
Lingo24, the Edinburgh translation provider, has returned to underlying profit for the first time since a big fund-raising round four years ago.
The tech-enabled business saw first half EBITDA hit £330,000 against an £81,000 loss in the corresponding period last year.
Revenue grew 23% to £5.14m and is on track to beat £10m in revenue for the full year for the first time.
In 2014 the company raised funds from external investors to strengthen its technology platform, sales and senior management teams.
Unlike other mid-sized translation companies, Lingo24 combines strategic consultancy, proprietary technology and translation services and 73% of revenue now comes from the company’s top 30 accounts (up from 53% in 2015, and 70% in 2017).
This broader strategic offering has driven growth from a range of clients, including Brewdog, Hunter Boots and adidas.
Founder, Christian Arno said: “Our business has changed beyond recognition and the focus on building long-lasting strategic relationships with our clients is clear in these numbers.
“As the world’s most globally minded companies reap the benefits of the latest translation technology, they tend to invest in making more content more global. As technology speeds time to market and reduces the ‘total cost of translation’, so we see the demand for senior level engagement with a tech-savvy translation partner increase too.”
Mr Arno said new business wins in B2B ecommerce, additional content required due to the introduction of GDPR regulations, and even the World Cup all contributed to demand in the first half.
The international push will continue in the second half. Last year the company announced the opening of an office in Amsterdam, its sixth, and Arno says this is showing early promise.
“We hosted our first Journey to Global event in Amsterdam in April – a peer-to-peer learning event where our customers and prospects can learn from one another about how to overcome the myriad challenges involved in becoming ever more global.
“We will host further events in the Netherlands, and increase our presence at key partner and customer events there and elsewhere, including the USA, in the second half of the year.”