LINGO24, the translation services specialist, has opened an office in The Netherlands to capitalise on its rapid growth in Amsterdam, as it forecasts lifting turnover to beyond £10 million for the first time.
The new office is the fourth international outpost for the Edinburgh-based tech firm, whose clients include BrewDog, Hunter Boot and Lush, which has relocated two senior leaders to Holland to take advantage of the country’s burgeoning e-commerce sector.
And, unveiling a 24 per cent increase in account numbers, the company signalled its expectation of returning to profit in the current year, following two years of investment in technology and ramping up its senior management and sales teams.
Lingo24, which was set up in Aberdeen in 2001, uses artificial intelligence which allows companies to present content such as their online product catalogues, and market their products, in foreign languages. It now has offices in Panama, Romania and the Philippines, in addition to Edinburgh and London, having attracted investment from leading Scottish business figures such as Paul Gregory, former chief executive of oil and gas research consultancy Wood Mackenzie, in 2014.
Christian Arno, the company’s founder and chief executive, said the move into The Netherlands comes as increasing numbers of US and Asian companies are setting up operations in the country. He said there is an opportunity in the market for Lingo24 because, while there are a number of small translation companies in operation, few of its direct competitors have a presence there.
“It’s partly to do with the market, it’s partly to do with the competitive landscape [in The Netherlands],” Mr Arno said. “The Netherlands, as a tax regime, have attracted a lot of North American and Asian companies to set up their European headquarters there. And the major language requirements will often come from Europe, because they have got so many languages and attractive economies. It’s becoming quite a centre for e-commerce companies, which is where we play well.”
Mr Arno said Brexit had not been a factor behind the move, noting that it was more about being closer to customers. But he said the fall in the value of the pound since the Brexit vote does present an opportunity for companies which have significant cost bases in the UK.
“It’s an opportunity for us to be more competitive cost wise, or make more profit in euros and dollars,” Mr Arno said. “My impression is that buyers aren’t really that bothered about whether we are a British company, a German company or whatever. I don’t think there is too much downside.”
Looking ahead, Mr Arno highlighted Chicago and Switzerland as locations for potential Lingo24 operations. But no further foreign bases are immediately planned for the firm, which currently employs 25 of its 170 staff in Edinburgh.
The majority of its biggest clients are not Scottish, and tend to be based in international hubs, including London and the South-east, Amsterdam and around the US. Mr Arno said he would like to secure more major clients in its homeland “because we are a Scottish exporter, and want to help other Scottish companies drive exports more”.
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