The study claimed that for the first time in years, there was a positive balance in selling prices and margins in two consecutive quarters, Q4 2006 and Q1 2007.

However, the quarterly study said the improved fortunes of many printers had come at a “heavy cost”, reporting a high number of closures and redundancies.

The analysis found that, year-on-year, the number of firms working below full capacity halved from 37% to 18%. Some 10% of survey respondents also reported that they had witnessed “some kind of change of ownership” in the past three months.

BPIF corporate affairs director Andrew Brown said it was “clear” that consol­idation in the industry “has improved the position for those companies that remain”.

He added: “However, competition remains fierce and margins are under pressure from rising costs. We can expect to see more merger and acquisition activity in the period ahead.”

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