Acquisitive corporate intermediary Jelf Group boosted pre-tax profits from £523,000 to £1 million in the year to last September.

AIM-quoted Jelf, which specialises in general insurance, financial services and healthcare, increased turnover 36 per cent in 2004-05 and lifted earnings 56 per cent to 5p a share. Chief executive Alex Alway says one-third of the Bristol-based company's growth came from acquisitions and expects more are on the way, particularly in insurance.

He says Jelf has invested 'very heavily' in infrastructure and support services to enable it to increase capacity and margins in an intermediary sector 'ripe for consolidation'. New acquisitions are most likely in insurance, where Alway maintains there is scope to grow books of business and margins.

He argues that, although insurance premiums overall have been softening from previous peaks, rates in Jelf's area of small and medium-sized corporate clients are proving more resilient than in 'big ticket' business. Insurance accounts for 40 per cent of the company's business, as does financial services, where the company increased earnings nearly 130 per cent to £589,000 on turnover 49 per cent ahead at £5.2 million.

This division provides employee benefits advice to companies and wealth management services to private clients. Growth was stimulated by February's acquisition of Arnold Wills, and Alway says Jelf's niches in this field have been 'buoyant'.

He says Jelf usually manages to retain key management and business books at the companies it buys and aims to finance such deals from cash flow, unless a larger tempting prize presents itself. Although trade creditors rose from £1.9 million to nearly £5 million last year, net assets doubled to £3 million and year-end cash quadrupled to £511,000.

Chairman Christopher Jelf declares, '2006 is going to be another year of significant progress.' At 119p, up 1p this morning, Jelf shares value the company at £16.2 million and should show progress on a medium-term view.