The number of company liquidations in Ireland fell to a new low of 313 in 2005, compared with 329 for 2004, according to figures from information company Experian.
The number of companies entering receivership was also down, to 14 in 2005 from 16 in 2004, while the number of petitions to wind up companies almost doubled, from 36 in 2004 to 61 in 2005.
'Having examined the circumstances relating to the 313 liquidations in 2005, the underlying feature in most cases was that the companies were undercapitalised,' said Experian director Liam Reddy.
According to the figures, almost one third of the 2005 insolvencies came from the construction sector. Mr Reddy said that despite the boom of recent years, the pricing of contracts and the tendering process has become highly competitive, resulting in some contractors operating on small margins.
The number of petitions to wind up companies virtually doubled in 2005, indicating increased activity from Revenue, according to Experian.
The other sector which experienced difficulty in 2005 was the catering, food and pub sector, with 44 liquidations.
