Hi.
I think there are a few things you can look at that should help with this specific keyword. Please note that anytime you focus on one specific keyword you could be jeopardising traffic from other keywords. Having said that there are a few things I would look at if my focus was only on that keyword.
Firstly, I would look at updating the title tag slightly. You currently have Language Translation Services | Translation Company, UK. It tends to help having your main keyword as the first thing in a title tag. It would be relatively easy and still very natural to re-write the title tag to remove language as the first phrase and start with translation services.
Secondly, and in my opinion more importantly I would look at adding some textual content to the homepage. It is the homepage that is ranking on the 2nd page for the keyword, yet there is very little content mentioning the phrase. It is only mentioned in anchor text or in very sort snippets of text. I would look at writing some content explaining what your translation services offer and what your unique selling point is. You should avoid write the content with your users in mind and not worry at all about the search engines. Doing this you will naturally make use of the keywords required.
With those changes in place I believe you will be in a better position to rank for the keyword however I think you will need to continue building good quality links. If you compare your site with language connect (who I see in 9th) you'll see there is still a way to go based on these metrics.
(I've ignored babelfish in 10th, because they aren't a good comparison, in that they aren't a direct competitor except for in the SERPS).
http://www.opensiteexplorer.org/www.pstranslation.co.uk%252F/www.languageconnect.net/a!comparison
The interesting metric in my eyes is the difference in linking root domains, which is thought of as a strong indicator for rankings. One word of warning, from what I see almost all your links are going to your homepage. Its natural for a large percentage of links to point to the homepage however to hardly have any external links to your internal pages could look suspicious.
Good Luck