The group behind the distinctive Aga ovens said the "tide is turning" as house sales gather pace, boosted by government schemes to increase mortgage availability and the recently launched Help to Buy initiative.
Aga Rangemaster said it was on track to post a full-year profit after a sales recovery since April, following a slow start to the year.
Sales fell 4% in the first three months of 2013, but jumped by 5% in the second quarter and Aga said it expects demand to continue to rise as UK and US housing markets improve.
Its floor tiles specialist arm Fired Earth delivered its first operating profit since the recession after sales rose 5% in the half year.
William McGrath, chief executive of Aga Rangemaster, said: "The tide is turning, the mood amongst our customers is better and there is a buzz about our new products."
The Leamington Spa-based firm said pension fund accounting changes and one-off costs dragged it deeper into the red in the first half, with losses widening to £2.4 million from £1.4m a year earlier.
Operating profit held firm at £1.5m after revenues edged up to £119.5m.
Aga has suffered tough trading since the financial crisis saw people rein in spending on big ticket items and as mortgage approvals dried up.
It has slashed costs to offset the sales woes and invested in new products, such as iTotal Control electric Aga models.
Aga's interim sales rose 8%, helped by demand for the new electric model ranges, which now account for more than 30% of all Aga sales.