LOCAL newspaper veteran Sir Ray Tindle has cemented his position as the third largest shareholder in Johnston Press, publisher of The Scotsman and the Yorkshire Post, by snapping up another 1.6 million shares, writes Tim Sharp.

Sir Ray, whose Tindle Newspapers business publishes more than 200 local titles, now owns 7.2% of the Edinburgh company. Although the purchase price was not disclosed, it will have cost him around £80,000. His stake, which is held directly and indirectly, now has a paper worth of some £2.3 million.

The news did nothing to boost Johnston Press’s share price, which fell 0.05p or 1% yesterday to 5p on thin trading volumes. The shares hit a low of 4p in early August.

Investors will receive an update on Johnston Press’s performance on Tuesday.

The company, which owns 318 newspapers, as well as magazines and websites, has been hit by declining circulation and advertising revenue in recent years and is saddled with around £371m of debt, a legacy of its rapid expansion before the credit bubble burst.

In August Johnston Press reported pre-tax profits were down 47.4% to £13.8 million.

After serving as a captain with the Devonshire Regiment, Sir Ray entered the media with a weekly paper in Tooting with a circulation of about 700.