National advice firm Jelf Group is in talks with insurance broker Marsh over a possible takeover.

The two companies are in ‘early stage’ discussions over a possible cash deal which would see Marsh acquire the entire share capital of Jelf.

Jelf shares closed at 207p yesterday but reached a high of 248p earlier today following reports that the two parties were in talks.

A deadline of 16 September has been set by which Marsh will either have to announce a firm intention to make an offer for Jelf or say that it no longer has plans to do so.

Jelf, which has business lines split across insurance, employee benefits and financial planning, posted a 61% increase in pre-tax profits for the year to 30 September 2014. Acquisitions and restructuring after the retail distribution review lead profits up from £4.6 million to £7.4 million, the firm said.

Revenues for the group’s financial planning arm, however, fell by 7.1% from £7.1 million in 2013 to £6.6 million in 2014.