A strong finish to the fiscal year has enabled takeover target Alesco Corporation to upgrade its expected annual underlying profit.

However, the supplier of garage doors, construction products, cabinets and windows says that after significant items it expects to make a loss of up to $13.9 million.

Alesco booked a net profit after significant items of $13.6 million in the prior year.

Alesco said on Wednesday that it expects its net profit before significant items, or underlying profit, to be in the range of $11.2 million to $11.4 million for the 2012 fiscal year.

“This is ahead of guidance of $9.9 million to $10.7 million provided in January 2012,” Alesco said.

Since its January guidance, Alesco has sold two loss-making businesses: Parbury and Dekorform.

In fiscal 2011, Alesco booked a net profit before significant items of $12.4 million.

But after significant items – which include a loss on the sale of various businesses, an impairment charge on goodwill, and costs associated with responding to a takeover offer from DuluxGroup – Alesco expects to report a loss of $13.7 million to $13.9 million.

Alesco chief executive Peter Boyd said trading conditions in the second half of the fiscal year were still tough but all of Alesco’s businesses had finished the year with a strong sales month.

“This resulted in us exceeding our January guidance,” Mr Boyd said.

The group had rationalised and repositioned its businesses over the past two years and now had a strong platform for growth, he said.

A recovery in housing and renovation markets would also boost earnings.

Net debt was expected to fall to $66 million at May 31, 2012, from $82.9 million at November 30, 2011.

The figures were based upon preliminary unaudited financial results for the year ended May 31, 2012.

Alesco said it planned to pay a fully-franked special dividend of 10 cents per share plus a fully-franked final dividend.

Alesco shares were eight cents higher at $2.01 on Wednesday.