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How’s your LSP doing? Find out by benchmarking it against the market

It is early days yet, but some of the data coming out of the
Association of Translation Companies’ 2016 UK Language Industry research
is looking very interesting indeed.

Our independent researcher, Konstantin Dranch, is reluctant to say too
much at the moment, but when I recently applied the thumbscrews, he
revealed that analysis of completed surveys to date suggests that the
average expected growth for UK LSPs in 2015/16 will be around 11.3 per
cent.  However, he was quick to say that some, especially smaller
companies, are more optimistic.  In that cohort growth is predicted to be
between 20 ­ 48 per cent.

He cautions that it is not all rosy though.  Whether this is a by-product
of the post Brexit uncertainty, he reveals that one in five LSPs is
bracing itself for zero or negative growth in 2016/17.

Other nuggets prised from Konstantin suggest that gross margins for UK
LSPs average 45 per cent, but again he warns that the research has thrown
up a few company performances at either end of the spectrum.  Some LSPs
are showing margins as high as 65 per cent, while others at the other end
of the table are reporting them at 25 per cent.

As I released the thumbscrews Konstantin let slip that the final results
will have some revealing data on earnings before interest and tax (EBIT).
He says findings so far suggest that the average EBIT for UK LSPs is
15.45 per cent.

All of this suggests that the analysis of the research, once it is
completed, will provide UK LSPs with hugely valuable data by which they
can benchmark their performance against their peer group, as well as
start making informed decisions about future strategies.

It is not too late to contribute to the research study.  If you are a
UK-based LSP we want you to participate and you can do that up till 10th
September by clicking HERE.

Happily Konstantin Dranch is going to be far more forthcoming when he
presents a summary of the research findings during the 2016 Language
Industry Summit taking place in London 22/23 September.  I am sure that
you will not need thumb screws to get him to sing like a canary and
elaborate on the findings.  However, if you want to quiz him in person
you will need to move fast.  There are just five days left of the
early-bird discount scheme, you are urged to book your place at the
Summit before delegate rates increase by as much as 30 per cent after
midnight on 31st August.

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