COMPANIES are missing out on valuable overseas business because of poor foreign language skills among their staff, according to a report published today.

A survey of 1,000 exporters found that four out of five could not conduct business in a foreign language and admitted they had lost export sales during the past two years.

One-third placed the least value on languages and two-thirds had no strategy to develop language skills.

Isabella Moore, president of the British Chambers of Commerce, which conducted the research, said she was worried by the findings.

She said: "Although language skills are just one ingredient to the success of an exporter, there is clearly much room for improvement.

"Language skills must be placed higher up the agenda as the majority of exporters do not speak foreign languages competently, have no formal strategy to capitalise on overseas markets and risk losing business as a result.

"With EU enlargement creating a 25-country trading block, it is time to ensure that British businesses stop losing trade and fully capitalise on overseas business opportunities.

"Learning a language from an early age is important, but continuing that learning throughout school will be of greatest value to business.''