About 

Inflexion’s 12-month stewardship with cinema operator Ster Century saw profits grow by 37% before its sale to a financial buyer generated a 244% IRR for investors. 

Multiplex cinema operator Ster had 87 screens across seven sites in the UK and Ireland at the time of our buyout. The cinemas were then brand new and the previous owners, a joint venture between two South African companies, had invested over £30m on the chain’s sites which were very modern, attractive, well located and featured ultra-wide screens.

Value acceleration

Inflexion won over the leadership team for the 2003 buyout and the year that followed saw a strong focus on renegotiating film costs, holding rent reviews and introducing a bonus scheme to incentivise cinema managers. Inflexion’s active role supported Ster to ultimately secure one of the highest rates of box office revenue per screen in the UK and as a result, a number of investors approached the business. Management chose to re-invest to be part of its continued success when we exited in 2004. 

37
%

profit growth

224
%

IRR

3.2
x

return on investment