The group's total pre-tax loss fell to �21.5m in the year to March 30, from �102.9m a year ago when it was hit by a �55m impairment charge related to its acquisition of the Early Learning Centre.

The updated figures from the Office for National Statistics showed that the UK's dominant services sector, which accounts for three quarters of national output, drove the recovery - growing 0.6pc over the three months.

Stocks in the U.S. rose, bucking a global selloff that began with a 7.3% plunge in Japan's stock market. Markets around the world had been jostled by a confluence of events that interrupted a monthslong rally in risky assets.

The boss of Flybe has hit out at "punitive" charges and taxes that have pushed the troubled regional airline to end flights in and out of London from next March.

The benefits of UK investment in renewable power that will add �100 a year to household energy bills are in jeopardy and should be bolstered with an approach that would add a further �20, the government's climate watchdog has said.