Trinity Mirror has announced a £175m share buy back in a move which should shore up its share price.

The buy back will return cash to shareholders by in effect giving investors a bigger share of the company for their investment.

It is part of a planned capital reorganisation which follows the group's review of its business and the disposal of certain businesses.

Announcing the buy back, the Trinity Mirror board said it had confidence in the group's ongoing cash flows and that its strong balance sheet after the return of capital would provide continuing financial flexibility for investment to create further shareholder value.

The company had to get clearance from the Pensions Regulator for the return of capital to shareholders, and topped up the pension fund by £108m as part of the process.

Trinity Mirror says it remains committed to "funding the remaining deficits in its defined benefit pension schemes over time".

It made £263m from selling parts of the business this year, including the Racing Post and a number of regional newspaper titles.

Shares reached a peak of 582p in the summer but advertising fears led to a fall, and shares were valued at 339¾p yesterday.

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