Tube manipulation specialist Tricorn is predicting a positive second half of the year as the Worcestershire company enjoys "steady demand" in its energy division.
The Malvern-based company said in a trading update to the stock exchange that the year to April 2014 had "proved challenging" with demand lower than expected.
But since issuing a statement to AIM in February, demand had stabilised and in some instances was showing signs of improvement.
"As a result, second half revenues are expected to be marginally up on this earlier guidance," the trading update issued today said.
"Restructuring within the energy division was completed as planned and with demand now steadied the business is far better positioned going forward.
"The year has proved challenging with demand lower through the second half of the year when compared to the first half. This has impacted the UK businesses in particular.
"Nevertheless, the group has made significant progress in laying the foundations for long term growth and has made further encouraging progress in strengthening relationships with its customers."
It said its transportation division was starting to see the benefits of new business and was "well advanced" with further prospects.
In China, its wholly owned facility and joint venture were developing well, it said, with revenue increasing from a broadening customer base and expanded product offering while new customer revenues continued to grow in the US
Its full year results for the year to March 31, 2014, will be published in June.