The number of company liquidations in Ireland fell to a record low last year, according to figures released yesterday by Experian.

This puts the Republic among the top four countries in the European Union in terms of the percentage of companies that are successful, according to Liam Reddy, director of Experian's business information services.

The number of liquidations fell to 313 last year, from 329 in 2004. The figures also show a decline in the number of companies entering receivership to 14 last year, from 16 in 2004. However, while declines were seen in both of these categories, the number of petitions to wind up companies almost doubled to 61, from 36 in the prior year.

The near doubling of the petitions to wind up companies comes as a result of increased activity by the Revenue Commissioners, according to Experian.

Mr Reddy said that, in contrast with other European countries, Ireland has a good record at keeping companies going. The number of liquidations has steadily declined since 2001, when 427 were recorded.

He also pointed out that this decline comes as the number of new companies being registered increases, therefore lowering the percentage of companies going bust.

Mr Reddy said that the underlying feature in most of last year's 313 liquidations was that the companies were undercapitalised.

Almost a third of the insolvencies came in the construction sector, a fate Mr Reddy attributed to the increased competitiveness in contract pricing and tendering. He said increased competition from overseas was causing many contractors to submit tenders at unrealistically low prices, meaning even the smallest of delays can lead to significant price overruns.

The other sector that experienced survival difficulties was the catering, food and licensed premises trade, with 44 liquidations last year. Mr Reddy attributed this decline to increased competition, particularly in the Dublin region.