Epwin Group PLC (LON:EPW) said it expects to recommend a final dividend for the year to December 31 as profits are expected to top market forecasts.
Net debt is estimated to be lower than current market expectations, the window and door manufacturer said.
The AIM-listed firm said it has experienced better than expected trading conditions as demand from the repair, maintenance and improvements market, which represents around 70% of revenues, has been particularly strong during the fourth quarter, while demand from the new build and social housing sectors has also been increasing.
Revenues between July 1 and November 30 rose 5% compared to last year, with window systems and cellular extrusion sales up 9%.
The company said demand has been strong, meaning supply chains remain under pressure due to COVID-19, which has impacted customer lead times for certain products as well as the commissioning of the new warehousing facility in Telford.
Epwin said it has taken actions to secure supply and the benefits of its new strategy and the new facility are expected to be seen from the second half of 2021.
Shares rose 3% to 92.02p on Wednesday morning.