Beds and mattresses manufacturer Sweet Dreams has reported a decline in sales.

According to its latest filed accounts for the year ended 31 March 2025, total sales fell 16.5% to £8.4m from £10.1m in 2024.

UK sales were down from £9.8m to £8.2m, while EU revenues remained at around £275,000.

Pre-tax losses resulted at £1.2m, widening from a loss of £1m recorded the previous year.

Stated within its report, Sweet Dreams said: “The company has had a difficult trading year with a reduction in turnover of 16.5%, with customer confidence a key factor.

“The directors have introduced £370k into the business to support its cash flow, this to be repaid only when trading conditions have improved substantially.

“The company has also consolidated its operations to one site, which has had no impact on production but has led to additional savings in insurance and utilities.

“From a business perspective, a new model range has been developed alongside overall rebranding, and the activation of a significant number of dormant business to business accounts where discounts for floor placements have been set up. This has shown to be positive in encouraging new orders.”

A statement from directors post-filing added: “While the figures reflect yet another challenging year they should be viewed in light of a transitional phase within the business.

“The results largely stem from legacy issues and one-off factors that have now been addressed, and improvement controls are now in place.

“Early indicators of the changes made show improvements in all aspects which will place us in a better position to deliver a more stable and sustainable performance going forward.

“We remain confident in the underlying strength of the business and believe that the actions taken during this period will support improved results in future reporting periods.”