Midlands group Sherwood, designer and supplier of what it terms "ladies' intimate apparel", returned to a profit in the full year.
Now it is set to change the company name as part of a rebranding exercise.
The Long Eaton-based company whose brands include Lepel, Miss Lepel, Discover Mademoiselle, Urban Nights and Ted Baker Intimates said it had decided against returning a previously announced #3.2 million to shareholders as it would have to make an additional contribution to the pension fund of #7.5 million.
The money will now be used to grow the business.
Full year pretax profit came in at #900,000 against a loss of #3.7 million, while sales for the year fell 21 per cent to #21.7 million from #27.3 million.
The turnover tumble came in the wake of a move to limit its involvement in Private Label supply - the result of the loss of two major customers following the closure of Allders and the sale of Littlewoods Stores to Primark, a tough retail environment and quota problems related to China-based sourcing.
It had meant "a significant reduction in personnel" - from a workforce of 170 down to 120.
The company said it expected to improve its performance in the year ahead.
Michael Hobbs, chairman, said: "Sherwood has been going through major changes over the last few years, but has been so focused on restructuring and dealing with the decline of its Private Label business, that it has not had time to fully develop a growth strategy."
However the company was now "a brand-led and focused operation" well positioned for growth.
It would only undertake Private Label supply with retailers "if the business is complementary and profitable".
Mr Hobbs went on: "We are now saying 'No' to marginal and often unprofitable business. On occasions the retail customer has come back to us prepared to accept more sensible terms rather than lose us as a supplier.
"This renewed confidence is making us more attractive! We are recognised as a specialist Private Label supplier that can add value, especially through design and our technical function.
"However, we are continually fighting against ongoing price deflation and changes in trading terms that will always make the Private Label business less attractive and more challenging. We will continue to review where this part of the business sits in our overall scheme but expect that it will continue to reduce as a proportion of total sales."
Sherwood recently bought the brand and assets of the Charnos Lingerie business from administrators for #585,000.
Charnos employs 44 people.
It expects to announce its new name shortly.