Retained earnings at Birmingham bed maker Kozee Sleep Midlands declined by more than £260k in 2013–14 as the balance value of the business slipped below £2m.

Shareholder funds at the 30th April year-end dropped to £1.8m (2013: £2m) as balance sheet indicators pointed to a quieter year for the mattress manufacturer.

The results are the first small company accounts to be filed by the business in 15 years, suggesting Kozee Sleep Midlands met at least two of the three criteria required for audit exemption.

These include having sales under £6.5m, employing an average of fewer than 50 people, and having total assets on the balance sheet of under £3.3m.

In 2012–13, Kozee Sleep Midlands sales totalled £6.1m while the business employed almost 100 people and had total assets worth £3.9m.

Assets in the latest period fell to £3.3m while sales and staff numbers were unreported. Depreciation represented £228k of the asset value fall with most of the remainder down its debtor book dropping to £772k (2013: £1.1m).

Retained earnings — which reflects either profits or losses after tax and dividend payments — dropped to £1.5m (2013: £1.8m). The company last paid a dividend to shareholders in 2002.