It was noticed that Noah was not breathing and emergency services were called, but he was pronounced dead in hospital.
Latewood and Cookson, both from Dudley, and the nursery, which is no longer in operation, are expected to be sentenced on 16 April.
The full charges admitted by the defendants were:
Kimberley Cookson: gross negligence manslaughter
Fairytales Day Nursery Limited: corporate manslaughter and failing to comply with a duty under the Health and Safety at Work Act 1974
Deborah Latewood: failing to comply with general duties under the Health and Safety at Work Act 1974
Alex Johnson from the CPS described the case as “deeply distressing”, representing “every parent’s worst nightmare whenever they leave their young child at a nursery,” they said.
“Noah Sibanda should have been safe in the care of professionals entrusted with his wellbeing.
“He lost his life as a result of reckless and dangerous sleeping practices which posed an obvious and serious risk of harm.
“The evidence in this case, including CCTV footage and expert medical findings, showed that Noah was placed to sleep in a way that severely restricted his ability to breathe and move.
“The prosecution case was that these practices created a suffocating environment, from which a 14-month-old child was clearly unable to escape.
“Nursery providers have a fundamental duty to protect the children in their care.
“This case underscores the devastating consequences of what happens when that duty is breached.”