AN angry dad is demanding compensation after his seven-year-old daughter came within inches of a tragic accident.

Megan Adams is suffering nightmares and cannot sleep properly after rolling on to a 7in Stanley knife sticking out of a bouncy castle safety mat.

Megan and her five-year-old brother Mitchell were playing on the mat as an end-of-term treat.

She escaped unhurt, but dad Shaun, who has spent four years establishing his bouncy castle hire business, said he was horrified at what could have happened.

He is calling for compensation and stringent new safety measures.

"The craft knife was under the top skin covering the sponge filling. An inch of the blade was sticking out," said Mr Adams, of Cranham Drive, Warndon.

Shocked

"The knife could have cut though an artery or gone though her eye.

"It's had a very bad effect on my daughter - she's started sleepwalking she's so shocked."

Mr Adams, aged 34, was due to take the bouncy castle to a children's party the next day and is still reeling about what could have happened.

"My business could have folded overnight and I'm extremely worried about its future," he said.

"That's why I'm demanding compensation - that and for Megan's sake. The company mustn't be allowed to get away with it."

Mr Adams had unrolled the new 10ft mat - which cost him £54 - at the family home when the accident happened last Friday.

It is designed to break children's falls as they jump down on to the ground.

Mr Adams complained to manufacturers Andico Design, which told him workers would be told to stop work each hour in future and count their knives.

"They wanted to take the mattress away to hush everything up," said the dad-of-two.

"I want the company to introduce even greater safety measures and put the mats through a metal scan before they go out to the public."

He is enraged by a curt letter he received from company chairman, Andy Francis, who said the matter was in the hands of its solicitors.

It read: "We are sorry you have experienced a problem. We are thankful your daughter has not been harmed in any way."

Today, Mr Francis said: "We've offered to replace the mat but Mr Adams wants to sensationalise the issue. We're doing all we can to co-operate."

Health and Safety Executive officials have launched an inquiry.