Recruitment specialist Staffline has reported positive trading results for the third quarter, with earnings for the year set to be ahead of expectations.

The company, which also provides outsourced human resource services, reports it has acquired a number of new accounts since June, boosting profitability.

A cost-cutting programme implemented throughout 2009 has also proved successful and the board now expects earnings for the year ending December 31 to be ahead of current expectations.

The group has had a more successful first 10 months of the year than originally anticipated despite the tough economic backdrop in many of its trading sectors, which has left the marketplace “extremely challenging”.

Operational savings have included rationalisation of its branch network, cutting staff by 20 per cent and a reduction in central costs. The integration of bolt-on acquisitions has also resulted in improved scope to drive efficiencies.

Chairman and chief executive Andy Hogarth said: “Our strong trading performance provides us with the confidence to continue to review acquisition opportunities as we look to invest further in our expansion.”

The group intends to issue an end-of-year trading update in the middle of January.

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