UPDATE 1-Staffline Recruitment sees 2008 profit in line

* Cost cutting, OnSite business progress help FY results

* Staffing to food industry relatively resilient

* Shares up almost 18 pct (Adds Prime People's trading update, share movement)

Jan 12 (Reuters) - Staffline Recruitment Group Plc (STAF.L) said on Monday its pretax profit for the year ended Dec. 31 would be in line with market expectations, helped by cost-cutting measures and progress made by its OnSite business, sending its shares up almost 18 percent.

The provider of recruitment and outsourced human resources services said the full benefit of the new OnSites opened during the year, mostly in the second half of 2008, would be felt in 2009.

Staffline, which manages temporary recruitment function of its clients on their premises through its OnSite locations, expects 2008 sales to be broadly maintained at 2007 levels.

The full-year performance, however, reflects a combination of reduced demand from existing customers due to worsening economic conditions, client site closures and the impact of a client receivership, Staffline said.

"Our core area of food processing, which represents over 60 percent of group sales, has remained relatively resilient. However, sales volumes have been reduced most notably from existing customers in the automotive, manufacturing and distribution sectors." it said.

Altium Securities kept its "buy" recommendation and 60 pence target price on the stock.