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Registration number: 12640257

Tier Operations Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Tier Operations Limited

Contents

Company Information

1

Directors' Report

2

Statement of Directors' Responsibilities

3

Independent Auditor's Report

4 to 6

Profit and Loss Account

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10 to 19

 

Tier Operations Limited

Company Information

Directors

Mr. H T G Moissinac-Massenat

Mr. M G H Romain

Registered office

C/O Wework
1 Mark Square
London
England
EC2A 4EG

Auditors

Rödl & Partner Limited 170 Edmund Street
Birmingham
B3 2HB

 

Tier Operations Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors, who held office during the year, were as follows:

A J Gayer (Resigned 8 May 2024)

F G A Jones (Resigned 2 August 2023)

The following directors were appointed after the year end:

Mr. H T G Moissinac-Massenat (appointed 8 May 2024)

Mr. M G H Romain (appointed 8 May 2024)

Principal activity

The principal activity of the company is renting and leasing of cars, light motor vehicles and other engineering activities.

Going concern

The directors have a reasonable expectation that Tier Operations Limited will have access to sufficient resources to continue in operational existence for the foreseeable future. However, Tier Operations Limited’s financial performance depends on both: (a) its operating income; and (b) anticipated financial and operational support from its parent, Tier Mobility SE. The continuation of such support from Tier Mobility SE is therefore an important factor as regards the directors’ assumption of a going concern for Tier Operations Limited.

Historically Tier Mobility SE has always supported Tier Operations Limited. However, as is typical for many venture-backed technology companies, Tier Mobility SE is not break-even and needs to maintain its debt facilities and / or raise additional funding on a periodic basis through various means (including from shareholders and external debt providers) in order to fund its operations. There is therefore always an element of uncertainty as to whether such ongoing funding will continue to be provided, as well as the future of Tier Mobility SE's strategic direction.

In light of: (a) Tier Operations Limited’s partial reliance on cash inflows from Tier Mobility SE; and (b) there being no certainty that Tier Mobility SE will continue to be able to secure ongoing funding or successfully pursue its strategic goals, an element of uncertainty exists which may cast doubt over Tier Operations Limited’s ability to trade as a going concern. However, the directors of Tier Operations Limited have a reasonable degree of confidence that Tier Mobility SE will continue to be able to support Tier Operations Limited and therefore consider it appropriate to prepare the accounts for Tier Operations Limited on a going concern basis.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Rödl & Partner Limited as auditors of the company is to be proposed by the directors.

Approved by the Board on 21 May 2025 and signed on its behalf by:

.........................................
Mr. M G H Romain
Director

   
     
 

Tier Operations Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether FRS 101 has been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Tier Operations Limited

Independent Auditor's Report to the Members of Tier Operations Limited

Opinion

We have audited the financial statements of Tier Operations Limited (the 'company') for the year ended 31 December 2023, which comprise Profit and Loss Account, Balance sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework and in accordance with the applicable accounting standards in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter

We draw attention to the fact that the company has incurred a net loss of £819,747 during the year ended 31 December 2023 and, as of that date, the company's liabilities exceeded its assets by £10,688,984. These conditions, along with other matters set forth in Note 2, indicate the existence of uncertainty that may cast doubt about the company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The company has obtained a letter of financial support from its ultimate parent company, stating its continued intent to provide necessary financial support to the company for the next twelve months from the balance sheet date. Our opinion is not modified in respect of this matter.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Tier Operations Limited

Independent Auditor's Report to the Members of Tier Operations Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the [set out on page 3], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Enquiry of management, those charged with governance around actual and potential litigation and claims;

Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Tier Operations Limited

Independent Auditor's Report to the Members of Tier Operations Limited

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Imran Farooq (Senior Statutory Auditor)
For and on behalf of Rödl & Partner Limited

170 Edmund Street
Birmingham
B3 2HB

21 May 2025

 

Tier Operations Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

31 December
2023
£

31 December
2022
£

Turnover

3

8,739,941

3,374,630

Cost of sales

 

(5,385,905)

(2,055,922)

Gross profit

 

3,354,036

1,318,708

Administrative expenses

 

(10,342,040)

(6,214,473)

Other operating income

4

6,213,339

1,420,622

Operating loss

5

(774,665)

(3,475,143)

Interest receivable and similar income

6

-

37,543

Interest payable and similar expenses

7

(45,082)

(7,925)

Loss before tax

 

(819,747)

(3,445,525)

Loss for the year

 

(819,747)

(3,445,525)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Tier Operations Limited

(Registration number: 12640257)
Balance Sheet as at 31 December 2023

Note

31 December
2023
£

31 December
2022
£

Fixed assets

 

Tangible assets

12

96,021

85,942

Right of use assets

13

745,104

422,573

 

841,125

508,515

Current assets

 

Debtors

14

9,565,561

3,885,532

Cash at bank and in hand

15

896,007

344,432

 

10,461,568

4,229,964

Creditors: Amounts falling due within one year

16

(21,458,349)

(14,381,780)

Net current liabilities

 

(10,996,781)

(10,151,816)

Total assets less current liabilities

 

(10,155,656)

(9,643,301)

Creditors: Amounts falling due after more than one year

17

(533,328)

(225,936)

Net liabilities

 

(10,688,984)

(9,869,237)

Capital and reserves

 

Called up share capital

20

1

1

Other reserves

 

(353,841)

(353,841)

Profit and loss account

 

(10,335,144)

(9,515,397)

Shareholders' deficit

 

(10,688,984)

(9,869,237)

Approved by the Board on 21 May 2025 and signed on its behalf by:

.........................................
Mr. M G H Romain
Director

   
     
 

Tier Operations Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Called up share capital
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 January 2023

1

(353,841)

(9,515,397)

(9,869,237)

Loss for the year

-

-

(819,747)

(819,747)

Total comprehensive income

-

-

(819,747)

(819,747)

At 31 December 2023

1

(353,841)

(10,335,144)

(10,688,984)

Called up share capital
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 January 2022

1

-

(6,069,872)

(6,069,871)

Loss for the year

-

-

(3,445,525)

(3,445,525)

Other comprehensive income

-

(353,841)

-

(353,841)

Total comprehensive income

-

(353,841)

(3,445,525)

(3,799,366)

At 31 December 2022

1

(353,841)

(9,515,397)

(9,869,237)

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated and domiciled in England and Wales.

The address of its registered office is:
C/O Wework
1 Mark Square
London
England
EC2A 4EG

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework and in accordance with applicable accounting standards.

The financial statements are presented using the currency of the primary economic environment in which the Company operates (its functional currency), which is Sterling. These financial statements are rounded to the nearest pound.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

Summary of disclosure exemptions

In these financial statements, the company has taken advantage of the exemptions available under FRS 101 in respect of the following disclosures:

Paragraphs 45(b) and 46 to 52 of IFRS 2 - ‘Share-based payments’ (how the fair value of goods/services received or equity instruments granted was determined and details of the number and weighted average exercise prices of share options).

Paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j)-(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66, B67 of IFRS 3 - ‘Business combinations’.

Paragraph 33(c) of IFRS 5 - ‘Non-current Assets Held for Sale and Discontinued Operations’ (disclosure of net cash flows attributable to operating, investing and financing activities of discontinued operations).

IFRS 7 - ‘Financial instruments: Disclosures’.

Paragraphs 91 to 99 of IFRS 13 - ‘Fair value measurement’ (disclosure of valuation techniques and inputs used for fair value measurement of assets and liabilities).

The requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 - ‘Revenue from Contracts with Customers’ (disaggregation of revenue, significant changes in contract assets and liabilities, details on transaction price allocation, timing of the satisfaction of performance obligations and significant judgements made in the application of IFRS 15).

The requirements of paragraph 52 [lessee], the second sentence of paragraph 89, and paragraphs 90, 91 and 93 [lessor] of IFRS 16 - ‘Leases’ (lessee disclosures and lessor disclosures in relation to finance leases and lease income on operating leases).

Paragraph 38 of IAS 1 - ‘Presentation of financial statements’ (comparative information requirements in respect of):

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The following paragraphs of IAS 1 - ‘Presentation of financial statements’ (removing the requirement to present):

IAS 7 - ‘Statement of cash flows’.

Paragraphs 30 and 31 of IAS 8 - ‘Accounting policies, changes in accounting estimates and errors’ (requirement for the disclosure of information when an entity has not applied a new IFRS that has been issued but is not yet effective).

Paragraph 17 of IAS 24 - ‘Related party disclosures’ (key management compensation).

The requirements in IAS 24, ‘Related party disclosures’ (to disclose related party transactions entered into between two or more members of a group).

Going concern

The directors have considered a number of factors that will impact the going concern of the business over the next 12 months from the date of approval of these financial statements.

The directors have a reasonable expectation that Tier Operations Limited will have access to sufficient resources to continue in operational existence for the foreseeable future. However, the company's financial performance depends on both: (a) its operating income; and (b) anticipated financial and operational support from its parent, Tier Mobility SE.

In respect of (a) and after taking account of a reasonable and possible downside scenario, macroeconomic factors and the company's ability to access working capital if required, the directors believe that the company will have sufficient funds to meet its liabilities as they fall due for that period.

Notwithstanding this assessment in respect of (b) the Directors highlight the continuation of support from Tier Mobility SE is an important factor as regards the assumption of a going concern for the company. Historically Tier Mobility SE has always supported Tier Operations Limited and has received a letter of support from Tier Mobility SE confirming its intention to continue to do so. However, as is typical for many venture-backed technology companies, Tier Mobility SE is not break-even and needs to maintain its debt facilities and / or raise additional funding on a periodic basis through various means (including from shareholders and external debt providers) in order to fund its operations.

In light of: (a) the company's partial reliance on cash inflows from Tier Mobility SE; and (b) there being no certainty that Tier Mobility SE will continue to be able to secure ongoing funding, an element of uncertainty exists which may cast doubt over Tier Operations Limted’s ability to trade as a going concern.

Given both the director's initial assessment and the letter of support, the directors have a reasonable degree of confidence that the company will have sufficient funds to continue in operational existence for at least 12 months from the date of approval of these financial statements and they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. The company recognises revenue when:

The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Foreign currency transactions and balances

The company’s financial statements are presented in sterling, which is also the company’s functional currency.

Transactions and balances
Transactions in foreign currencies are initially recorded in the entity’s functional currency by applying the spot exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance sheet date. All differences are taken to the income statement.

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets is stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of Tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

Straight line - 24 months

Right of use assets - property

Straight line over its useful life

Other property, plant and equipment

Straight line - between 24 to 120 months

Tools and equipment

No depreciation charge

Motor vehicles

Straight line - 36 months

Other assets

No depreciation charge

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as Fixed assets.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the trade debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Leases

At the inception of a contract, the TIER Mobility Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset. TIER Mobility Group uses the definition of a lease in IFRS 16.
This policy is applied to contracts entered into, on or after 1 January 2019.

Leases as a lessee

At the commencement date of a lease, TIER Mobility Group recognizes a right-of-use-asset and a lease liability for all leases, except for short-term leases (i.e. leases with a term of 12 months or less) and leases for which the underlying asset is of low value. The practical expedient to recognize the lease payments associated with those leases as an expense on a straight-line basis over the lease term has been chosen.

The present value of the lease payments is calculated using the term and risk equivalent incremental borrowing rate, if the interest rate implicit in the lease cannot be readily determined. The incremental borrowing rate is the rate of interest that the TIER Mobility Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The lease term is based on the non-cancellable period of a lease. Periods covered by an option to extend (or terminate) the lease are included in the lease term if it is reasonably certain that such an option will be exercised (or will not be exercised in the case of a termination option).

Depreciation of right-of-use assets is presented within the functional area to which it relates. Interest expenses on lease liabilities are shown as interest and similar expenses. They are also included in the cash flow from operating activities, whereas cash payments for the principal portion of lease liabilities are presented as a separate line item within the cash flow from financing activities.

During 2020, TIER Mobility Group leased warehouses and office buildings and recognized right-of-use assets in a separate balance sheet position. The rental agreements for warehouses and office buildings not exempted from recognizing right-of-use assets have lease terms between 13 months and 5 years

As a lessor:

At inception or on modification of a contract that contains a lease component, TIER Mobility Group allocates the consideration in the contract to each lease component on the basis of their relative standalone prices. When TIER Mobility Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, TIER Mobility Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, TIER Mobility Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. To date, TIER Mobility Group has not classified any lease as finance lease as a lessor.

TIER Mobility Group’s business model includes vehicle rentals of e-scooters and e-mopeds. Customers can either rent vehicles on a single ride or recurring basis via packages and subscriptions. This rental business generates revenues from lease contracts under IFRS 16 because the use of an identified asset (e-scooter or e-moped) can be controlled by the customer. Due to the short rental periods where a single e-scooter can be used for a maximum of 60 minutes, the leases are classified as operating leases. There are no long-term cash flows from lease contracts with customers: customers pays for the ride after each ride, packages are paid upfront, subscriptions renew every month but can be terminated by the client.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

For defined contribution plans contributions are paid publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract had evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the Balance Sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

31 December
2023
£

31 December
2022
£

Rendering of services

8,739,941

3,374,630

The analysis of the company's turnover for the year by market is as follows:

31 December
2023
£

31 December
2022
£

UK

8,739,941

3,374,630

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

31 December
2023
£

31 December
2022
£

Intercompany income

6,213,339

1,420,622

5

Operating loss

Arrived at after charging/(crediting)

31 December
2023
£

31 December
2022
£

Depreciation expense

104,653

124,982

Depreciation on right of use assets - property

258,792

140,812

Provision of impairment on fixed assets

-

471,148

6

Interest receivable and similar income

31 December
2023
£

31 December
2022
£

Foreign currency gains

-

37,543

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

7

Interest payable and similar expenses

31 December
2023
£

31 December
2022
£

Interest on obligations under finance leases and hire purchase contracts

18,394

7,925

Foreign exchange loss

26,688

-

45,082

7,925

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

31 December
2023
£

31 December
2022
£

Wages and salaries

2,392,091

1,733,113

Social security costs

271,849

259,261

Pension costs, defined contribution scheme

74,265

36,406

2,738,205

2,028,780

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

31 December
2023
No.

31 December
2022
No.

Administration and support

89

33

89

33

9

Director's remuneration

There was no directors' remuneration during the year.

10

Auditor's remuneration

31 December
2023
£

31 December
2022
£

Audit of the financial statements

12,000

10,000

Other fees to auditors

Taxation compliance services

8,800

6,920

Payroll services

18,707

11,255

27,507

18,175


 

The company has entered into a liability limitation agreement with the company’s auditor. The principal terms of the agreement are fair and reasonable.

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Income tax

Tax charged/(credited) in the profit and loss account

31 December
2023
£

31 December
2022
£

Current taxation

UK corporation tax

-

-

-

-

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

31 December
2023
£

31 December
2022
£

Loss before tax

(819,747)

(3,445,525)

Corporation tax at standard rate

-

-

Total tax charge/(credit)

-

-

12

Tangible assets

Other assets
£

Furniture, fittings and equipment
£

Motor vehicles
£

Tools & equipments
£

Other property, plant and equipment
£

Total
£

Cost

At 1 January 2023

964

243,305

12,697

16,411

30,113

303,490

Opening correction

-

-

16,411

-

-

16,411

Additions

-

97,618

-

-

1,667

99,285

Disposals

(964)

-

-

-

-

(964)

Transfers

-

-

16,411

(16,411)

-

-

At 31 December 2023

-

340,923

45,519

-

31,780

418,222

Depreciation

At 1 January 2023

-

194,342

12,542

-

10,664

217,548

Charge for the year

-

63,405

32,977

-

8,271

104,653

At 31 December 2023

-

257,747

45,519

-

18,935

322,201

Carrying amount

At 31 December 2023

-

83,176

-

-

12,845

96,021

At 31 December 2022

964

48,963

155

16,411

19,449

85,942

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Right of use assets

Property
£

Total
£

Cost

At 1 January 2023

697,823

697,823

Additions

684,351

684,351

Write-off

(103,028)

(103,028)

At 31 December 2023

1,279,146

1,279,146

Depreciation

At 1 January 2023

275,250

275,250

Charge for the year

258,792

258,792

At 31 December 2023

534,042

534,042

Carrying amount

At 31 December 2023

745,104

745,104

At 31 December 2022

422,573

422,573

14

Trade and other debtors

31 December
2023
£

31 December
2022
£

Trade debtors

488,218

342,840

Amounts due from related parties

8,370,947

2,127,716

VAT repayable

-

897,494

Prepayments

228,877

122,681

Other debtors

477,519

394,801

9,565,561

3,885,532

15

Cash at bank and in hand

31 December
2023
£

31 December
2022
£

Cash at bank

896,007

344,432

16

Creditors: amounts falling due within one year

31 December
2023
£

31 December
2022
£

Trade payables

1,385,514

454,981

Accrued expenses

804,433

211,964

Amounts due to related parties

18,810,539

13,279,211

Social security and other taxes

147,360

10,206

Other payables

96,520

274,674

Lease liabilities

213,983

150,744

21,458,349

14,381,780

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

17

Creditors: amounts falling due after more than one year

31 December
2023
£

31 December
2022
£

Lease liability

533,328

225,936

18

Loans and borrowings

31 December
2023
£

31 December
2022
£

Non-current loans and borrowings

Lease liability (IFRS 16)

533,328

225,936

19

Obligations under leases and hire purchase contracts

Finance leases

The total future value of minimum lease payments is as follows:

31 December
2023
£

31 December
2022
£

within one year

213,983

205,637

More than one year and less than five years

533,328

154,732

747,311

360,369

20

Share capital

Allotted, called up and fully paid shares

31 December
2023

31 December
2022

No.

£

No.

£

Ordinary share of £1 each

1

1

1

1

       

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £74,265 (2022 - £36,406).

 

Tier Operations Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

22

Parent and ultimate parent undertaking

The company's immediate parent is Tier Mobility SE.

The most senior parent entity producing publicly available financial statements is Tier Mobility SE. These financial statements are available upon request from c/o Techspace Lobeckstraße 36-40, 10969, Berlin, Germany.

Relationship between entity and parents

The parent of the largest group in which these financial statements are consolidated is Tier Mobility SE, incorporated in Germany.

The address of Tier Mobility SE is:
c/o Techspace Lobeckstraße 36-40, 10969, Berlin, Germany.