Dawson International has said a strong performance from its US and UK knitwear business will raise profits.
The Kinross-based company said its fortunes were partly boosted by high margin sales to couture customers.
The success in knitwear has more than made up for the home furnishing division which the company expects to make loss.
Dawson said it was also still owed millions of dollars from the Inner Mongolia King Deer Cashmere Company.
The original debt, which the company said was "long-standing", totalled $10m, however $1.5m has now been paid back.
Dawson, which produces cashmere jerseys and owns the Barrie brand, also supplies bed linen.
Last year, the company sold its Todd and Duncan cashmere yarn business to a Chinese firm for £6.1m.
In a separate announcement, Dawson announced Giovanni Ghione was joining the company as deputy chairman.
