Newsplus Group has slipped into the red following problems introducing new IT last year.

The CTN retailer reported pre-tax losses of £149,000 for the year to 31 March 2008 against a profit of £131,000 the year before, according to accounts at Companies House. Sales rose 2.1% to £12.2m.

Delayed implementation of new IT had proved time-consuming, the company said. Legal action has been taken against the supplier.

Newsplus is continuing to refurbish its estate and is trialling a new concept store, Red, in a bid to rivalTesco Express.