Staffline reported pre-tax profit of £3.4m for 2006, up from £2.5m in 2005.

Its headcount rose to 213, from 188.

It also announced the acquisition of Onsite Partnership, a Market Harborough-based recruitment firm, for an initial £2m cash. There will be an additional payment depending on performance.

Onsite Partnership was founded in 1999 by Brian Jordan, its managing director, and specialises in the provision of staff to a mostly blue-chip client base, principally in distribution and logistics. The company employs 28 permanent members of staff, operating from 25 on site locations.

Andy Hogarth (pictured), Staffline's managing director, said: “Onsite Partnership's business complements our existing operations and will, we believe, provide us with additional cross-selling opportunities and a greater geographical reach, in line with our stated strategy for growth.”

Staffline shares rose in early trade.