Sales in the six months to September 30 were flat at£4.95 million, while losses increased to£737,000 compared with£447,000 a year earlier.
Chief executive Robert Colquhoun said: 'Current trading is under serious pressure. Despite this, Christmas trading is still showing good rates of growth and we remain confident of delivering a maiden profit in the current year.'
The company, which specialises in catering for the over-50s market, has invested over the past two years in launching and marketing new catalogues. New products areas include toys and hobbies, video and DVDs and outdoor pursuits.