Company registration number 08598706 (England and Wales)
KINTO JOIN LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
KINTO JOIN LTD
COMPANY INFORMATION
Directors
M R Kainzbauer
A L Beddoe
(Appointed 1 July 2023)
F B Kenny
(Appointed 1 January 2024)
R E Jebali
(Appointed 1 January 2024)
Company number
08598706
Registered office
Great Burgh
Burgh Heath
Epsom
Surrey
KT18 5UZ
Auditor
BKL Audit LLP
Chartered Accountants
5 Fleet Place
London
EC4M 7RD
KINTO JOIN LTD
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 20
KINTO JOIN LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company during the year has been to develop a portfolio of software as a service mobility solutions and provide licences for this software to group companies. One of the products is a software enabling employers to promote and incentivise verifiable sustainable commutes amongst its employees via carpooling & active travel (cycling & walking) all within closed communities. The other product is an on demand shuttle management platform.

Results and dividends

The results for the year are set out on page 6.

Directors

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

W Thierry
(Resigned 29 June 2023)
R C Balshaw
(Resigned 1 January 2024)
M R Kainzbauer
P R Niehaus
(Resigned 1 January 2024)
A L Beddoe
(Appointed 1 July 2023)
F B Kenny
(Appointed 1 January 2024)
R E Jebali
(Appointed 1 January 2024)
Financial instruments
Financial instruments and risk management

The main financial risks inherent from the company’s operations are credit risk, cash flow risk and liquidity risk. The directors monitor the cash flows, banking facilities and net debt on an ongoing basis to ensure adequate working capital facilities are in place.

Research and development

The company undertakes research and development to develop and enhance their product and roll out software as a service to other companies within the group.

Future developments

The company supported by their parent company, Toyota Financial Services (UK) PLC, will continue to develop their products and work to provide licences to other markets within the Toyota Group, as well as expand its offering to third party customers.

Auditor

Wilson Wright LLP acted as auditor of the company up until 2 April 2024.  On 2 April 2024, Wilson Wright LLP transferred its audit business to BKL Audit LLP. The members subsequently consented to the appointment of BKL Audit LLP as auditor to the company. The auditor BKL Audit LLP will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

KINTO JOIN LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Statement of directors' responsibilities

The directors are responsible 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 Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies note

In accordance with the provisions of s414B and s415A of the Companies Act 2006, the company is entitled to the small companies’ exemption in relation to the strategic report and directors’ report for the financial year.

 

On behalf of the board
F B Kenny
Director
21 March 2025
KINTO JOIN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINTO JOIN LTD
- 3 -
Opinion

We have audited the financial statements of Kinto Join Ltd (the 'company') for the year ended 31 March 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's 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.

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 financial statements are 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

KINTO JOIN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINTO JOIN LTD (CONTINUED)
- 4 -
Matters on which we are required to report by exception

In the light of the 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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's 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.

Capability of the audit in detecting irregularities, including fraud:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations, health and safety regulations and anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the auditors included:

 

 

 

 

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

KINTO JOIN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINTO JOIN LTD (CONTINUED)
- 5 -

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

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.

Nikki Crane FCA (Senior Statutory Auditor)
For and on behalf of BKL Audit LLP
24 March 2025
Chartered Accountants and Statutory Auditors
5 Fleet Place
London
EC4M 7RD
KINTO JOIN LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2024
2023
Notes
£
£
Revenue
3
774,248
741,992
Cost of sales
(165,901)
(72,770)
Gross profit
608,347
669,222
Administrative expenses
(4,077,787)
(3,350,647)
Other operating income
3,861,349
2,615,870
Operating profit/(loss)
4
391,909
(65,555)
Tax on profit/(loss)
7
36,127
(16)
Profit/(loss) and total comprehensive income for the financial year
428,036
(65,571)

The income statement has been prepared on the basis that all operations are continuing operations.

 

The notes on pages 9 to 20 form part of these financial statements.

KINTO JOIN LTD
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
31 March 2024
- 7 -
2024
2023
Notes
£
£
Non-current assets
Intangible assets
9
3,733,055
3,258,028
Property, plant and equipment
8
91,899
42,008
3,824,954
3,300,036
Current assets
Trade and other receivables
11
399,022
383,615
Current tax recoverable
-
105,122
Cash and cash equivalents
1,142,849
227,444
1,541,871
716,181
Current liabilities
Trade and other payables
12
1,664,238
977,661
Taxation and social security
270,274
13,070
Lease liabilities
13
9,075
21,377
1,943,587
1,012,108
Net current liabilities
(401,716)
(295,927)
Total assets less current liabilities
3,423,238
3,004,109
Non-current liabilities
Lease liabilities
13
-
0
8,907
Net assets
3,423,238
2,995,202
Equity
Called up share capital
15
1,046
1,046
Share premium account
3,795,315
3,795,315
Retained earnings
(373,123)
(801,159)
Total equity
3,423,238
2,995,202
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 March 2025 and are signed on its behalf by:
F B Kenny
Director
Company Registration No. 08598706
KINTO JOIN LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
Balance at 1 April 2022
1,046
3,795,315
(735,588)
3,060,773
Year ended 31 March 2023:
Loss and total comprehensive income
-
-
(65,571)
(65,571)
Balance at 31 March 2023
1,046
3,795,315
(801,159)
2,995,202
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
428,036
428,036
Balance at 31 March 2024
1,046
3,795,315
(373,123)
3,423,238
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
1
Accounting policies
Company information

Kinto Join Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Great Burgh, Burgh Heath, Epsom, Surrey, KT18 5UZ.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost basis and the financial statements are prepared in sterling, which is the functional currency of the company. The principal accounting policies adopted are set out below.

The company has taken advantage of the following disclosure exemptions under FRS 101:

 

Where required, equivalent disclosures are given in the group accounts of Toyota Financial Services (UK) PLC. The group accounts of Toyota Financial Services (UK) PLC are available to the public and can be obtained from Great Burgh, Burgh Heath, Epsom, Surrey, KT18 5UZ.

1.2
Going concern

The company's revenue is derived from the sale of annual licences of the developed software to group companies rather than third parties, therefore guaranteeing revenue for the licence period. The app is being further developed for expansion into other markets via licence sales to other group companies within these markets.true

 

At 31 March 2024 the company had net current liabilities of £401,716 (2023: £295,927), net assets amounting to £3,423,238 (2023: £2,995,202) and a cash balance of £1,142,849 (2023: £227,444). Subsequent to the year-end, the company has generated other operating income of £2.63 million from Toyota Financial Services (UK) PLC and continued to generate licence revenues from other group companies.

 

The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 10 -
1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

The major source of revenue for the company is licences for their car-pooling app and platform. Licence revenue is recognised on a straight line basis over the course of the licensing contract. In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the company exceeds the payment, a contract asset (accrued income) is recognised. If the payments exceed the services rendered, a contract liability (deferred income) is recognised.

1.4
Intangible assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

 

Development Costs 20% straight line

Trademark 25 years straight line

Research and development activities

 

All expenditure on research is recognised as an expense when it is incurred. Expenditure relating to the development of products is capitalised if certain specific criteria are met in order to demonstrate that the asset will generate probable future economic benefits and that its cost can be reliably measured. Capitalised development costs are stated at cost less accumulated amortisation and accumulated impairment losses.

 

Amortisation is recognised using the straight-line basis over the useful life of the asset, which is considered to be 5 years.

1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Right-of-use assets
Straight line over the term of the lease
Fixtures and fittings
25% reducing balance
Computer equipment
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

The right-of-use asset consists of a lease of an office which is carried under the cost model. Right-of-use assets are depreciated over the shorter of the lease term and the useful life of the underlying asset. Depreciation starts at the commencement date of the lease.

KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.6
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Fair value measurement

IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The company is exempt under FRS 101 from the disclosure requirements of IFRS 13. There was no impact on the company from the adoption of IFRS 13.

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost

Trade Receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

1.10
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Research and Development Expenditure Credit ("RDEC")

The Company received, in the United Kingdom, the Research and Development Expenditure Credit ("RDEC"), a significant government tax incentive. RDEC is a research and development ("R&D") tax credit incentive offered by the UK government to promote private sector investment in innovation. The expenditure credit is calculated as a percentage of qualifying R&D expenditure. The percentage increases to 20% from 1 April 2023 (13% previously). This benefit is recorded as income included in profit before tax as a component of other operating income. The credit is taxable at the normal Corporation Tax rate and is offset against tax liability or, in some circumstances, is payable in cash. The recoverability of the RDEC as it relates to future deferred tax asset recognition is recorded in current tax expense. To the extent that the RDEC relates to capitalised development expenses, a corresponding deferred income credit is recognised in contract liabilities and released over the useful life of the capitalised asset through other operating income.

KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

At inception of a contract, the company assesses whether a contract is, or contains, a lease. It recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is a lessee. The right-of-use assets and the lease liabilities are presented as separate line items in the statement of financial position.

 

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the company uses its incremental borrowing rate. It is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

 

The right-of-use asset comprises the initial measurement of the corresponding lease liability, plus lease payments made on or before the commencement day, less any lease incentives received and plus any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses (cost model as described in note 1.5 above). Impairment is assessed as described in note 1.6 above.

 

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements
Capitalisation of development costs

The company must use judgement to ensure that all development costs capitalised meet the capitalisation criteria under IAS 38.

KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Critical accounting estimates and judgements
(Continued)
- 14 -
Key sources of estimation uncertainty
Impairment of intangible assets

Management must determine whether there are indicators of impairment of the company's intangible assets. factors taken into consideration in reaching such a decision include the economic viability and expected future performance of the asset. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its estimated recoverable amount.

3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Licensing Revenue
673,089
651,525
Intercompany Recharges
101,159
90,467
774,248
741,992
2024
2023
£
£
Revenue analysed by geographical market
Europe
774,248
741,992
2024
2023
£
£
Other income
Consultancy fees
3,800,352
2,534,100
RDEC Tax credit receivable
60,996
81,770
4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging:
Exchange losses
43,040
28,689
Research and development charged as an expense
1,136,960
858,286
Fees payable to the company's auditor for the audit of the company's financial statements
23,000
21,600
Fees payable to the company's auditor for tax compliance services
3,750
14,500
Fees payable to the company's auditor for other services performed
9,375
11,850
Depreciation of property, plant and equipment
6,593
6,057
Depreciation of right-of-use asset
21,578
12,075
(Profit)/loss on disposal of property, plant and equipment
-
740
Amortisation of intangible assets
1,656,722
1,284,839
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
5
Employees

The average monthly number of persons employed by the company during the year was:

2024
2023
Number
Number
Sales and Marketing
2
2
Development
8
8
Total
10
10

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
368,511
364,576
Social security costs
49,031
39,731
Pension costs
6,779
4,427
424,321
408,734

The comparative number has been adjusted to exclude those directors who are not employed under contracts of service.

 

Wages and salaries are presented after reclassifications have been made to capitalise payroll costs. Wages and salaries (including social security costs and pension costs) before capitalisation totalled £792,178 (2023: £765,081).

6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
-
79,647
-
79,647
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
18,688
16
Adjustments in respect of prior periods
(54,815)
-
Total UK current tax
(36,127)
16
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Taxation
(Continued)
- 16 -

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

2024
2023
£
£
Profit/(loss) before taxation
391,909
(65,555)
Expected tax charge/(credit) based on a corporation tax rate of 25.00% (2023: 19.00%)
97,977
(12,455)
Effect of expenses not deductible in determining taxable profit
191,115
91,260
Utilisation of tax losses not previously recognised
(235,692)
(61,544)
Permanent capital allowances in excess of depreciation
(19,463)
(1,724)
Under/(over) provided in prior years
(54,815)
16
Income not subject to tax
(15,249)
(15,537)
Taxation (credit)/charge for the year
(36,127)
16

RDEC recorded as other operating income in 2024 was £60,996 (2023: £81,770).

 

The adjustment of £54,815 in relation to the prior year tax charge relates to the RDEC refund received in the year relating to the 2022 R&D claim.

8
Property, plant and equipment
Right-of-use assets
Computer equipment
Total
£
£
£
Cost
At 1 April 2023
32,066
21,198
53,264
Additions
369
77,693
78,062
At 31 March 2024
32,435
98,891
131,326
Accumulated depreciation and impairment
At 1 April 2023
1,781
9,475
11,256
Charge for the year
21,578
6,593
28,171
At 31 March 2024
23,359
16,068
39,427
Carrying amount
At 31 March 2024
9,076
82,823
91,899
At 31 March 2023
30,285
11,723
42,008

The right-of-use asset relates to an 18 month office lease which was entered into on 1st March 2023. The lease liabilities referred to in note 13 relate to this lease. The disposal relates to the termination of a 3 year lease.

KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
9
Intangible fixed assets
Software
Development costs
Total
£
£
£
Cost
At 31 March 2023
25,000
6,582,684
6,607,684
Additions - purchased
-
0
2,131,749
2,131,749
Disposals
-
0
(339,854)
(339,854)
At 31 March 2024
25,000
8,374,579
8,399,579
Amortisation and impairment
At 31 March 2023
25,000
3,324,656
3,349,656
Charge for the year
-
0
1,656,722
1,656,722
Eliminated on disposals
-
0
(339,854)
(339,854)
At 31 March 2024
25,000
4,641,524
4,666,524
Carrying amount
At 31 March 2024
-
0
3,733,055
3,733,055
At 31 March 2023
-
0
3,258,028
3,258,028

The development costs intangible assets include the Kinto Join and Kinto Ride apps which are updated internally on an ongoing basis. The Kinto Join asset is carried at £1,916,113 (2023: £1,918,344) and has a remaining amortisation period of 5 years (2023: 5 years) on a straight line basis from the initial capitalisation date for assets capitalised during 2024. The Kinto Ride asset is carried at £1,816,942 (2023: £1,339,685) and has a remaining amortisation period of 5 years (2023: 5 years) on a straight line basis. There are no other individually material intangible assets.

 

Intangible assets amortisation is recorded in administrative expenses in the income statement.

10
Contracts with customers
2024
2023
2023
Period end
Period end
Period start
£
£
£
Contracts in progress
Contract receivables included in trade and other receivables
324,540
346,115
36,563
Analysis of contract liabilities
2024
2023
£
£
Deferred income
198,299
284,321

Significant changes in contract assets and liabilities

Contract liabilities for licence contracts have decreased by £86,022. The decrease in 2024 was due to an decrease in overall contract activity.

 

Revenue recognised in relation to contract liabilities

Revenue recognised in 2024 that was included in the contract liability balance at the beginning of the period was £284,321 (2023: £132,623).

KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
11
Trade and other receivables
2024
2023
£
£
Trade receivables
324,540
346,115
Amounts owed by related parties
68,898
-
Prepayments and accrued income
5,584
37,500
399,022
383,615
12
Trade and other payables
2024
2023
£
£
Trade payables
153,913
318,595
Accruals and deferred income
1,501,434
648,254
Other payables
8,891
10,812
1,664,238
977,661
13
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
9,075
21,377
In two to five years
-
8,907
Total undiscounted liabilities
9,075
30,284

Lease obligations are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
9,075
21,377
Non-current liabilities
-
0
8,907
9,075
30,284

The present and fair value of the company's lease obligations is approximately equal to their carrying amount.

 

The lease obligations relate to capitalised lease costs in accordance with IFRS 16. Refer to note 10 for further information. No interest was charged in the current year.

Other leasing information is included in note .
KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
6,779
4,427

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary A shares of 1p each
80,064
80,064
800
800
Ordinary B shares of 1p each
18,372
18,372
184
184
Ordinary C shares of 1p each
6,247
6,247
62
62
104,683
104,683
1,046
1,046

Ordinary A shares carry full rights in respect of voting. All shares have the right to participate in any distribution or dividends payable and rank pari passu in respect of dividends and on a winding up.

16
Events after the reporting date

On 22 January 2024, Kinto Join Ltd set up a new branch in Serbia. There was no activity in the branch during the financial year, however post year end, services have commenced, with the branch providing development services on Kinto Join Ltd's applications.

17
Related party transactions

Included in trade receivables are balances totalling £216,115 (2023: £315,820) due from group companies under common control.

 

Included in trade payables are balances totalling £153,614 (2023: £215,497) due to group companies under common control.

 

Included in accruals and deferred income are balances totalling £1,189,230 (2023: £294,590) due to group companies under common control.

 

Amounts paid to companies controlled by key management personal amounted to £2,300,980 (2023: £1,737,104) during the year of which £1,397,862 (2023: £1,124,534) was capitalised as development costs. Amounts owed at the year-end included in trade and other payables amounted to £Nil (2023: £94,301). Amounts owed at the year-end included in trade and other receivables amounted to £68,898 (2023: £Nil).

 

KINTO JOIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
18
Controlling party

The immediate parent undertaking is Toyota Financial Services (UK) PLC, a company incorporated in England and Wales and is the smallest group for which consolidated financial statements are prepared. Copies of the financial statements of Toyota Financial Services (UK) PLC are available from Great Burgh, Burgh Heath, Epsom, Surrey, KT18 5UZ.

 

The ultimate parent undertaking is Toyota Motor Corporation, a company incorporated in Japan, and is the largest group for which consolidated financial statement are prepared. Copies of the financial statements can be obtained from 1 Toyota-Cho, Toyota City, Aichi 471-8571, Japan.

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