Recruitment and outsourced human resource services provider Staffline has announced in a trading update that it expects earnings for the year ended 31 December 2009 to be ahead of current expectations.

The group says it expects challenging market conditions to continue in many of its trading sectors but has achieved operational savings through a rationalisation of its branch network, a 20% headcount reduction and a reduction in central costs. It adds that the integration of bolt-on acquisitions has resulted in improved scope to drive efficiencies.

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

Staffline says it intends to issue a year-end trading update in mid January.