The company is “well financed” to come to the aid of ailing recruiters, according to its managing director Andy Hogarth, who told Recruiter the company is in talks with a “handful” of agencies.

Staffline aims to offer owners a better return than if they just sold the business on the open market, while prices are depressed, and it hopes to take advantage of efficiencies gained through its existing back office function and branch network.

“We are open to being approached. We can offer them [owners in financial difficulty] an increased earn out,” said Hogarth, adding some managers were looking for a way out, while others wanted to retain some level of control in the medium to long term.

Staffline’s share price, which increased from 21p on the 1 February to 39.5p on the 1 May, has given them an increased access to cash and
the company has access to bank backing “if necessary”.

The announcement comes after Staffline made a deal with the administrators of Birmingham-based industrial and commercial recruiter Bridge Contract Services to supply its customers and collect on behalf of its creditors (recruiter.co.uk, 7 May).

Hogarth said Staffline had received a fee for the service and retained a number of the company’s clients.