Serco said it could benefit from Brexit in the short term if the Government "needs help quickly", as the company lifted its revenue guidance for the year after a string of new contract wins.

The outsourcer said that, like other firms, it has been plagued by the "fog of uncertainty" over Britain's impending departure from the European Union but as it "neither exports nor imports to any significant degree" it is not exposed directly to the border issues that worry other businesses.

"In the short term there is a small possibility that there could be an upturn in demand if Government needs help quickly; on the downside, we think it unlikely that there will be any precipitous drop in demand as a result of Brexit," it said.

The company, meanwhile, predicted a rosier outlook for the year having reached an "inflection point" in 2018 following its restructuring when it experienced a slowdown in winning new business from the Government after the collapse of rival Carillion.

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The company generated £2.8 billion of revenue last year, down 2% from 2017, while underlying trading profit rose 40% to £93.1 million as the group cut costs.

Hampshire-based Serco expects 2019 revenue to be between £2.9bn and £3bn, up from its previous guidance of £2.8bn to £2.9bn.

Underlying trading profit is expected to come to £150m, which tops the company's previously guided range of between £95m and £100m.

Recruitment firm Hays generated higher profits in the first half, but fears of slower growth in Germany have spooked investors.

Pre-tax profits rose eight per cent to £122.6 million in the six months to December 31.

Net fees reached £568m, up 9% on a like-for-like basis with 20 countries delivering record levels.

In Germany, the company had a record half as net fees rose 14%.

However, Hays indicated that growth could be more modest as the country, which is its largest market, amid an economic slowdown.

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Slightly lower levels of contractor extensions have already slightly reduced the overall growth rate.

Shares in the company dipped 7% as investors adjusted their expectations for the full year.

Insurance group Axa has revealed a $335 million (£291m) hit from the Californian wildfires.

Hurricane Michael in the US also left it nursing a $261m (£227m) blow to earnings in its fourth quarter.

However, the French firm said overall underlying earnings still reached a record level of $6.2 billion (£5.4bn) in 2018, up six per cent year-on-year with currency effects stripped out.