Mail order 'family software' retailer Dream Direct's interims showed sales doubling to £2.4m for the six months to 27 September. Despite pre-tax losses decreasing only slightly to £522,000, it also anticipates being cashflow positive in the second half, giving investors further reason to get into the shares. The second half is crucial though, encompassing the crucial Christmas period. Two-thirds of company revenue normally comes in between September and March and, encouragingly, the initial pre-Christmas signs are 'very good', leading the group to decide to increase catalogue distribution by 3m to 23m for the year to March. There are worries, though. Following a House of Lords decision, VAT is to be charged on postal revenue, which will affect all mail order retailers in the future. Also, a downturn in consumer spending patterns would have an inevitable impact. But the signs are that Dream Direct is a business that has a lot of mileage in it. It is the market leader in selling 'non best-sellers', it is expanding rapidly and seemingly moving towards profitability. Buy.