The insolvency practitioner produces quarterly figures based on companies perceived to be in "corporate distress".

According to the latest figures, 1,978 companies displayed signs of distress in the first quarter of 2011, down 15% on Q1 2010, which saw 2,322 companies in the sector in trouble. The figures also show that levels dropped 11% sequentially from 2,211 in the fourth quarter of 2010.

The print and packaging sector is one of a number that saw a decrease in distressed companies in the first part of the year, with only the food and beverage, automotive hotels and accommodation, general retail, haulage and logistics and utilities seeing a better percentage turnaround year-on-year.

In total, 186,554 companies showed signs of distress, 15% up from 161,601 year-on-year, and up 26% quarter-on-quarter from 147,836.

The report states: "It is evident that the lingering effects of the bad weather prior to Christmas and the continuing financial pressures have slowed growth and raised the level of stress in the first quarter.