Revenue also grew over the period, ended March 31, from£10.9 million to£15 million. The retailer attributed the rise to rolling out new catalogues.
However, the leisure and entertainment products retailer is still running at a loss, which was reduced to£721,000 from£749,000 the year before. It also suffered from one-off relocation costs of£574,000, after moving to larger premises in Witney to support future growth.
The company boosted its customer database by 40 per cent and proved it was able to retain customers, with repeat business accounting for 46 per cent of orders during the period.
Current trading is going well, the company said, with like-for-like orders in April and May up 17 per cent on the previous year. Dream Direct added it was on track for maiden profitability in the 2005 financial year.
Chief executive Robert Calquhoun said: 'To report a loss for the year is a significant disappointment, but our forecasts for the current year remain unchanged and the board is confident of being able to report its maiden profit before tax in the current year.'