EBITDA climbed 50 per cent at luxury bed manufacturer Hypnos in the year to end June as the group made the most of rising demand.

The privately owned Buckinghamshire firm posted profits before interest and non-cash depreciation and amortisation costs of £1.4m, up from £910k in 2012–13.

Hypnos had already pre-released sales figures, which were confirmed as having risen 19 per cent to £36.8m.

Statutory pre-tax earnings were impacted by directors’ decision to write-down the entire remaining goodwill in the business — a  £3.9m non-cash write-off for the year — which meant it reported an overall £2.9m deficit.

Hypnos said its decision was made as a result of the imminent introduction of FRS102 — a new financial reporting standard — saying that it was recognising a change in the reporting of purchased goodwill.

* all figures from the consolidated accounts of Keen & Toms Holdings