CHOPSTIX MIDDLEBROOK LIMITED

Executive Summary

Chopstix Middlebrook Limited operates as a small, niche real estate letting company focused on leasehold services within its restaurant group. While its financials show early-stage losses and negative net assets typical of a young firm, its vertical integration positions it to leverage group synergies amidst challenging market conditions for commercial real estate. Compared to broader sector players, it remains a small-scale, specialized operator with limited diversification and financial scale.

CHOPSTIX MIDDLEBROOK LIMITED - Analysis Report

Company Number: 13421538

Analysis Date: 2025-07-29 15:06 UTC

1. Industry Classification
   Chopstix Middlebrook Limited operates primarily under SIC code 68209, which corresponds to "Other letting and operating of own or leased real estate." This sector involves companies that lease, rent, and manage properties either owned or leased by themselves, often serving as intermediaries or facilitators for property usage without engaging directly in construction or property sales. Key characteristics of this sector include reliance on stable rental income streams, asset management efficiency, and tenant relationship management. The sector tends to be capital intensive, with significant fixed assets on balance sheets and a focus on occupancy rates and lease terms.

2. Relative Performance
   As a small private limited company, Chopstix Middlebrook Limited reported turnover of £136,420 for the 52-week period ending April 2023, a significant increase from £11,496 in the prior period. Despite this revenue growth, the company posted a modest operating loss of £1,062 (previously £384 loss). The balance sheet reveals net liabilities of £1,445 and negative net current assets of £10,784, indicating short-term liquidity pressures. Fixed assets stand at £9,339, relatively low for the real estate letting sector, reflecting the company's small scale. Compared to typical industry metrics, where established real estate letting firms often maintain positive net assets and profitability supported by steady rental income, Chopstix Middlebrook’s financials suggest it is still in an early growth or investment phase, with limited scale and negative equity, which is not unusual for a company incorporated in 2021.

3. Sector Trends Impact
   The real estate leasing sector in the UK is influenced by several macro and micro trends. Post-pandemic market conditions have impacted commercial real estate demand, especially in retail and hospitality-related properties. Inflationary pressures and rising interest rates have increased financing costs and affected property valuations. However, niche leasing operators tied to specific sectors (such as Chopstix Middlebrook providing leasehold and facilities services to group-operated restaurants) may benefit from vertical integration and stable tenancy within their group. The company’s close relationship with Chopstix Group Limited and Chopstix Stores Limited as controlling interests suggests a strategic positioning to leverage group synergies amidst broader market volatility. Sector trends toward flexible leasing and asset-light strategies may also influence operational approaches in this niche.

4. Competitive Positioning
   Chopstix Middlebrook Limited appears to be a niche player within the broader real estate letting sector, serving primarily the restaurant operations of its parent group entities rather than competing broadly in open market leasing. This vertical integration offers strengths such as predictable tenant relationships and aligned operational goals but limits diversification and scale. Financially, the company’s small turnover and slight operating loss reflect the nascent stage of operations and limited scale compared to larger competitors with diversified property portfolios and stronger balance sheets. The negative net equity and working capital deficit highlight financial vulnerabilities that typical industry leaders mitigate through asset scale and cash flow stability. However, its focused business model within a controlled group environment may reduce competitive pressures typical in the wider sector.