Staffline now expects earnings for both the first half and full financial year to be significantly ahead of current expectations, according to a trading update.

The update says that while its acquisitions and contract wins will benefit the group in the future, strong demand from existing clients has, in part, been due to increased use of temporary labour caused by the current uncertain economic climate.

The update adds that while this increase in demand with existing customers has continued into June, Staffline says it should not be considered to represent a consistent upward trend as trading conditions continue to be highly competitive and margins remain under pressure.