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Company registered number: 11283634















TOYOTA CONNECTED EUROPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
COMPANY INFORMATION


Directors
Mamoru Hayakawa 
Frank Chukwuma Okoisor 
Shinichi Taniguchi 




Registered number
11283634



Registered office
2nd Floor 80 Turnmill Street

London

EC1M 5QU




Independent auditors
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors

40 Clarendon Road

Watford

United Kingdom

WD17 1JJ




Bankers
Sumitomo Mitsui Banking Corporation
99 Queen Victoria Street

London

EC4V 4EH





National Westminster Bank Public Limited Company

250 Bishopsgate

London

EC2M 4AA





 
TOYOTA CONNECTED EUROPE LIMITED
 

CONTENTS



Page(s)
Strategic Report
 
1 - 3
Directors' Report
 
4 - 6
Independent Auditors' Report
 
7 - 11
Statement of Comprehensive Income
 
12
Balance Sheet
 
13 - 14
Statement of Changes in Equity
 
15
Notes to the Financial Statements
 
16 - 32


 
TOYOTA CONNECTED EUROPE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present their strategic report for the year ended 31 March 2024.

Business review
 
The principal activity of the company is to leverage the power of data to create products and services in the mobility ecosystem that serve a variety of B2B, B2B2C and B2C use cases. The company’s activities are   based around its core engineering capabilities across data and mobility products, along with its expertise in design and user experience.
The results reflect the company's sixth trading year in London. The turnover of the business was £41,218,364 (2023: £14,794,852) with a loss before tax of £554,898 (2023: £9,516,652). The results for the year are set    out in the Statement of Comprehensive Income on page 12.
The company is in a net assets position with net liabilities of £37,015,668 (2023: £35,835,551).
The outlook for 2025 is positive, with continued development in both products and services.

Principal risks and uncertainties
 
Economic risk
The risk of inflation may have an adverse impact on costs over the next year. The Company will seek to manage this through the pricing of its products and services.
Financial risk
All key financial figures are monitored on a regular basis. The Company has strong support from its parent company and good liquidity therefore the overall risk should remain low for the foreseeable future.
Foreign exchange risk
The company is exposed to foreign exchange risk in the usual course of business, mainly through sales contracts entered in Euros and US Dollars. The company reviews this on a regular basis and is in regular conversations with the parent company to ensure these risks are understood and managed centrally. See Financial instruments on Page 5.

Page 1

 
TOYOTA CONNECTED EUROPE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial key performance indicators
 
We consider the Company's key performance indicators are those that communicate the financial   performance and strength of the Company, being turnover, profit before tax and net assets.
The Company's key financial indicators during the year were as follows:


2024
2023
      £000
      £000
Turnover



41,218
 
14,795
 
Loss before tax



555
 
(9,517)
 
Net liabilities



(37,015)
 
(35,836)
 

During the year ending 31 March 2024, the company achieved 178.6% revenue growth due to adjustments made in prior period. The turnover balance reported in 2023 is not directly comparable to the 2024 balance, despite the year on year changes in reported turnover, the underlying activity of the Company remains broadly consistent year on year and in line with our business plans. The loss before tax was £554,898 which was -1.3% of revenue (2023: £9,516,652, -64.3%). This loss has led to an increase in net liabilities at the year-end; the closing net liabilities were £37,012,308 (2023: £35,835,551).

Other key performance indicators
 
We place importance on the following non financial KPIs and strive daily to improve them through communication with stakeholders.
Product/Service Quality
Improving quality is an essential element in order to provide products and services that satisfy our major customer, Toyota Motor Europe NV/SA (“TME”), and other Toyota Group customers. In order to understand Toyota's global mission and accurately reflect the specific needs of customers in our products and services, we are promoting opportunities for communication with customers and fostering close relationships with customers through employees seconded from TME and Toyota. Employees are also trained in the Toyota Production System, which is used to improve the quality of software and designs.
Talent Acquisition and Retention
The fields of advanced software development and UX design are evolving at a rapid pace, and the competition for talent is fierce. By basing our business in London, we aim to attract and retain talented people, and the turnover rate of employees is one of our important indicators. We are committed to fostering a positive and inclusive workplace culture that attracts and retains top talent. By investing in our employees' professional development and well-being, we aim to create a high-performing and engaged workforce.

Page 2

 
TOYOTA CONNECTED EUROPE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Directors' statement of compliance with duty to promote the success of the Company
 
The directors are aware of their duty under section 172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:

a)the likely consequences of any decision in the long term;
The directors understand the business and the evolving environment in which the Company operates.
All decisions are taken with the aim of improving the success of the Company in the long term.
 
b)the interests of the Company’s employees;
The directors communicate regularly to ensure employees understand the Company's values and work together towards a common mission.
 
c)the need to foster the Company’s business relationships with suppliers, customers and others;
The directors believe in developing mutually beneficial long-term relationships based on mutual trust with all suppliers. In order to realize a data-driven ecosystem, the directors strengthen cooperative relationships with customers and suppliers and maintain appropriate relationships that comply with regulations.
 
d)the impact of the Company’s operations on the community and the environment;
In order to contribute to the sustainable development of society and the world through its business activities while cooperating with global society, Toyota has been conducting continuous environmental initiatives since the 1960s. Toyota’s aim is to build a corporate group that is admired and trusted by society through ensuring that all employees, including those at consolidated subsidiaries, recognise sustainable policies. As a member of the Toyota Group, we promote business activities that are considerate of society and the environment.
 
e)the desirability of the Company maintaining a reputation for high standards of business conduct; and
As a member of the Toyota Group, "Honesty first, Integrity always" is the most important element of our Code of Conduct. The board’s decisions consider the Company’s code of conduct, we are promoting the Toyota Way and Toyota Culture among our employees. We are aiming to create innovative customer experiences that lead to the mass production of human happiness.
 
f)the need to act fairly between members of the Company.
The directors ensure that all members are treated equitably, and it fosters trust between the Company and its stakeholders. The directors understand that unfair treatment can lead to disputes, legal action, and damage to the Company's reputation.


The financial statements on pages 11 to 32 were approved by the Board of Directors on 31 March 2025 and signed on its behalf by:.



Mamoru Hayakawa
Director

Date: 31 March 2025

Page 3

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS 101 “Reduced Disclosure Framework”, 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:


select suitable accounting policies and then apply them consistently;
state whether applicable United Kingdom Accounting Standards, comprising FRS 101 have been followed, subject to any material departures disclosed and explained in the financial statements;
make judgements and accounting estimates that are reasonable and prudent 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 safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are also 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.  

Results and dividends

The loss for the year, after taxation, amounted to £1,180,117 (2023 - loss £9,323,060).

The directors do not propose the payment of a dividend (2023 - £Nil). 

Going Concern

The company recorded a net loss before tax of £554,898 and is in a current net liabilities position of £37,015,668 as at 31 March 2024. Given the financial position of the company the directors have received confirmation   from its immediate parent company, Toyota Connected Corporation, that it will continue to support the Company for at least one year after these financial statements are signed. The directors have reviewed the cash flow projections for the next 12 months and have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Based on the information above, the Company’s forecasts and the continued availability of financial support from its immediate parent, the directors consider it appropriate to prepare the financial statements on a going concern basis. 

Page 4

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Future developments

The directors plan to put into practice the following vision to strengthen our core competencies and become the preferred partner of our customers.
Short-Term Vision
Deliver in the most cost-efficient manner with high quality and delight our customers;
Be recognised as a leader in software development in our customers, through technological innovation and unique selling points derived from our knowledge of Toyota;
Leverage core competencies (data, cloud & design)to grow our revenue in sales enablement domains;

Mid-Term Vision
Be the software development partner of choice for the existing customers and other EU region stakeholders;
Monitor future of Toyota & Market and play role in early stage to capitalize on future opportunities (move up the value chain);
Continually strive to create products related to mobility, new domain and Innovation;

Financial instruments

The Company has a normal level of exposure to prices, liquidity and cash flow risks arising from trading activities which are conducted in Pounds Sterling, Euros, US dollars and Yen. The foreign exchange risk is managed centrally at a group level; as a result, the Company has not entered any hedging arrangements in respect of risks relating to trade debtors or trade creditors.

Directors
The Directors who served throughout the year and up to the date of signing the financial statements, unless otherwise stated, were as follows:
Matthew Peter Harrison (resigned 1 January 2025)
Mamoru Hayakawa (appointed 1 April 2024)
Frank Chukwuma Okoisor
Shinichi Taniguchi (appointed 28 June 2023)
Masato Nakata (resigned 27 June 2023)
Steven Singh Basra (resigned 30 June 2023)
Miguel Silva Ramalho Da Fonseca (resigned 18 January 2024)
Ryo Yamamoto (resigned 15 April 2024)
Gerald Killmann (appointed 2 February 2024, resigned 30 June 2024)
Directors' indemnities
As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a      qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 2006. The     indemnity was in force throughout the last financial year and is currently in force. The Company also   purchased and maintained throughout the financial year Director's and Officers' liability insurance in respect     of itself and its Directors.

Research and development activities

Expenditure on the research phase of the Company’s projects is expensed as they are incurred. During the year, no development costs were capitalised (2023: £Nil).

Page 5

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Engagement with suppliers, customers and others

Stakeholder engagement is important to the Company and the Company has a diverse group of     stakeholders.
 
The Board are made aware of the needs and requirements of these stakeholders through regular      discussions with the departments who have the contact with them. If any concerns are raised, the Board acts   to ensure that the feedback is built into future decision making.
Customers
The needs of the customer, whether it is the Company’s immediate customer, such as TME, or the ultimate customer who buys the vehicle are important to the Company. The flexibility that the Company provides in  terms of fulfilling orders to it customers is a key contributor to this.
Suppliers
The supplier network that supports the Company is essential to its success. The Company develops mutually beneficial long-term relationships based on shared trust. This is achieved by having close and wide-ranging communications with a focus on sharing knowledge.

Branches outside the United Kingdom

The Company has no overseas branches.

Disclosure of information to auditors

In the case of each director in office at the date the Directors' Report is approved:
 
so far as they have taken all the steps that they ought to have taken as a  is aware, there is no relevant audit information of which the Company's auditors are unaware, and

they have taken all the 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 auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Independent auditors

The auditorsPricewaterhouseCoopers LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

 
This report was approved by the board and signed on its behalf.
 





Mamoru Hayakawa
Director

Date: 31 March 2025

Page 6

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOYOTA CONNECTED EUROPE LIMITED
 

Disclaimer of opinion


Because of the significance of the matters described in the Basis for disclaimer of opinion paragraph below,   we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly we do not express an opinion on Toyota Connected Europe Limited’s financial statements (the “financial statements”).
We were engaged to audit the financial statements, included within the Annual report and financial     statements (the “Annual Report”), which comprise: the balance sheet as at 31 March 2024; the statement of comprehensive income and the statement of changes in equity for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”, and applicable law).


Basis for disclaimer of opinion


We were unable to obtain sufficient appropriate audit evidence over the company’s accounting records,  impacting both the current and prior financial years and opening comparative balances, supporting the   following financial statement line items and disclosures:
 
turnover;
cost of sales and operating expenses;
debtors: amounts falling due within one year;
creditors: amounts falling due within one year and creditors: amounts falling due after more than one     year; and
related transactions including other operating income (FX) and tax.

Additionally, the company has not been able to provide evidence to support the appropriateness of the use       of disclosure exemptions in respect of the requirements of IAS 7 and IAS 24, taken under FRS 101, as disclosed in note 2.2 of the financial statements.
Whilst significant efforts have been made to obtain sufficient and appropriate evidence to support the aforementioned financial statement line items and disclosures, we were unable to perform satisfactory audit procedures in the timeframe available to obtain reasonable assurance that those financial statements items  and disclosures were free from material misstatement.  As a result, we were unable to determine whether any further adjustments or disclosures would be required in respect of the aforementioned financial statement      line items, making up the Balance sheet as at 31 March 2024, the Statement of comprehensive Income, the Statement of changes in equity and the Notes to the financial statements for the year ended 31 March 2024.
Independence
We remained independent of the company in accordance with the ethical requirements that are relevant to     our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have   fulfilled our other ethical responsibilities in accordance with these requirements.

Page 7

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOYOTA CONNECTED EUROPE LIMITED (CONTINUED)


Conclusions relating to going concern


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.
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.
 
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as     to the company's ability to continue as a going concern.

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



Reporting on the Strategic report and Directors' report


Notwithstanding our disclaimer of an opinion on the financial statements, based on the work undertaken in     the course of the audit, the information given in the Strategic report and Directors' report for the year ended     31 March 2024 is consistent with the financial statements.
Because of the significance of the matter described in the Basis for disclaimer of opinion paragraph above      we have been unable to form an opinion whether, based on the work undertaken in the course of the audit,    the information given in the Strategic report and Directors' report for the year has been prepared in    accordance with applicable legal requirements.
Notwithstanding our disclaimer of an opinion on the financial statements, in light of the knowledge and understanding of the company and its environment obtained in the course of the audit and performed       subject to the pervasive limitation described above, we did not identify any material misstatements in the Strategic report and Directors' report

Page 8

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOYOTA CONNECTED EUROPE LIMITED (CONTINUED)


Responsibilities for the financial statements and the audit
 

Responsibilities of the directors for the financial statements
As explained more fully in the Directors' responsibilities statement, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied    that they give a true and fair view. The directors are also responsible for such internal control as they   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.
Auditors’ responsibilities for the audit of the financial statements
Our responsibility is to conduct an audit of the financial statements in accordance with ISAs (UK) and to issue an auditors’ report. However, because of the matters described in the Basis for disclaimer of opinion section    of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Capability of the audit in detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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 tax jurisdictions the company operates in, 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 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 to manipulate financial results and potential      management bias in the selection and application of significant accounting judgements and estimates. Audit procedures performed by the engagement team included:
 
Discussions with management, including consideration of known or suspected instances of non- compliance with laws and regulations, bribery and fraud, including performing additional procedures    where applicable;
Reviewing board meeting minutes and significant contracts;
Identifying and testing the validity of journal entries, in particular journal entries posted with unusual   account combinations and out of period adjustments;
Challenging assumptions made by management in the selection and application of significant accounting judgements and estimates;
Review of expenses and intercompany confirmations;
Incorporating elements of unpredictability in our audit procedures; and
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements.

There are inherent limitations in the audit procedures described above. We are less likely to become aware     of instances of non-compliance with laws and regulations that are not closely related to events and   transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due
Page 9

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOYOTA CONNECTED EUROPE LIMITED (CONTINUED)


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.

Use of this report
 

This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in  giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom  this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting
 
Companies Act 2006 exception reporting

Arising from the limitation of our work referred to in the Basis for disclaimer of opinion paragraph above:

we have not obtained all the information and explanations that we considered necessary for the purpose    of our audit; and
we were unable to determine whether adequate accounting records have been kept by the company.

Under the Companies Act 2006 we are also required to report to you if, in our opinion:
returns adequate for our audit have not been received from branches not visited by us; or
certain disclosures of directors’ remuneration specified by law are not made; or
the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.
 


 

Page 10

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOYOTA CONNECTED EUROPE LIMITED (CONTINUED)


Other matters 
 















 




James Cadzow (Senior Statutory Auditor)
for and on behalf of
PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors
40 Clarendon Road
Watford
United Kingdom


31 March 2025
Page 11

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
41,218,364
14,794,852

Cost of sales
  
(34,096,022)
(18,543,629)

Gross profit/(loss)
  
7,122,342
(3,748,777)

Administrative expenses
  
(7,150,620)
(7,536,710)

Other operating (losses)/gains
 5 
(1,435,007)
1,809,164

Operating loss
 6 
(1,463,285)
(9,476,323)

Other income
 
226,298
-

Interest receivable and similar income
 10 
756,249
-

Interest payable and similar expenses
 11 
(74,160)
(40,329)

Loss before tax
  
(554,898)
(9,516,652)

Tax on loss
 12 
(625,219)
193,592

Loss for the financial year
  
(1,180,117)
(9,323,060)

Total comprehensive income for the year
  
(1,180,117)
(9,323,060)

The notes on pages 16 to 32 form part of these financial statements.

Page 12

 
TOYOTA CONNECTED EUROPE LIMITED
REGISTERED NUMBER: 11283634

BALANCE SHEET
AS AT 31 MARCH 2024

Restated
2024
2023
Note
£
£

  

Fixed assets
  

Tangible assets
 13 
2,318,581
2,868,211

  
2,318,581
2,868,211

Current assets
  

Work in progress
 14 
321,368
-

Debtors: amounts falling due after more than one year
 15 
9,618
10,565

Debtors: amounts falling due within one year
 15 
43,645,190
49,548,084

Cash at bank and in hand
 16 
40,599,307
31,955,237

  
84,575,483
81,513,886

Creditors: amounts falling due within one year
 17 & 25
(64,719,595)
(76,608,426)

Net current assets
  
 
 
19,855,888
 
 
4,905,460

Total assets less current liabilities
  
22,174,469
7,773,671

  

Creditors: amounts falling due after more than one year
 18 & 25
(59,056,738)
(43,591,140)

  
(36,882,269)
(35,817,469)

Provisions for liabilities
  

Other provisions
  
(133,399)
(18,082)

  
(133,399)
(18,082)

  

Net liabilities
  
(37,015,668)
(35,835,551)


Capital and reserves
  

Called up share capital 
 23 
4,500,000
4,500,000

Profit and loss account
 24 
(41,515,668)
(40,335,551)

Total Equity
  
(37,015,668)
(35,835,551)


Page 13

 
TOYOTA CONNECTED EUROPE LIMITED
REGISTERED NUMBER: 11283634
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements on pages 11 to 32 were approved and authorised for issue by the board on 31 March 2025 and were signed on its behalf by: 




Mamoru Hayakawa
Director

Date: 31 March 2025

The notes on pages 16 to 32 form part of these financial statements.



Page 14

 
TOYOTA CONNECTED EUROPE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
4,500,000
(31,012,491)
(26,512,491)


Comprehensive expense for the year

Loss for the year
-
(9,323,060)
(9,323,060)



At 31 March 2023
4,500,000
(40,335,551)
(35,835,551)


Comprehensive expense for the year

Loss for the year
-
(1,180,117)
(1,180,117)


At 31 March 2024
4,500,000
(41,515,668)
(37,015,668)


The notes on pages 16 to 32 form part of these financial statements.

Page 15

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Toyota Connected Europe Limited is a private company limited by shares incorporated in United Kingdom. The Company is registered and domiciled in England, United Kingdom. The address of the registered office is 2nd Floor 80 Turnmill Street, London, EC1M 5QU. The principal activity of the company is to leverage the power of data to create products and services in the mobility ecosystem that serve a variety of B2B, B2B2C and B2C use cases. The company’s activities are based around its core engineering capabilities across data and mobility products, along with its expertise in design and user experience.

2.Material accounting policy information

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework'  and the Companies Act 2006 as applicable to companies using FRS 101.
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 (see note 3).

The financial statements are prepared on a going concern basis.
There are no amendments to accounting standards, or IFRIC interpretations that are effective for the year ended 31 March 2024 that have a material impact on the company's financial statements.
The principal accounting policies are set out below. These policies have been consistently applied unless otherwise stated.

Page 16

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Material accounting policy information (continued)

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
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
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

The requirements of paragraphs 10(f) and 40A-D of IAS 1 Presentation of financial statements:

10(f) (a statement of financial position as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements); and
40A-D (requirements for a third statement of financial position).

This information is included in the consolidated financial statements of Toyota Connected Corporation for the year ended 31 March 2024 and these financial statements may be obtained from 1-11-11 Nishiki, Naka-ku, Nagoya, Aichi Prefecture, Japan 460-0003.

 
2.3

Going concern

The company recorded a net loss before tax of £554,898 and is in a current net liabilities position of £37,012,308 as at 31 March 2024. Given the financial position of the company the directors have received confirmation from its immediate parent company, Toyota Connected Corporation, that it will continue to support the Company for at least one year after these financial statements are signed. The directors have reviewed the cash flow projections for the next 12 months and have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Based on the information above, the Company’s forecasts and the continued availability of financial support from its immediate parent, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Page 17

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Material accounting policy information (continued)

 
2.4

Revenue

Revenue from the provision of services is recognised in the accounting period on the satisfaction of performance obligations, such as when services are provided, at an amount which reflects the consideration to which the company expects to be entitled to. Revenue is measured as the fair value of the consideration, excluding discounts, rebates, value added tax and other sales taxes and gross of withholding tax.
The performance obligations and consideration are identified in the contract between the Company and the customer.
The revenue recognition criteria in IFRS15 are applied using the following 5 step model:
1. Identify the contract(s) with the customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations
5. Recognise revenue when, or as, each performance obligation is satisfied.
For time and materials contracts and fixed term contracts to provide services, a contract or quotation is formed between the customer and supplier when a contract is signed by both parties. The distinct performance obligation can be readily identified by the services defined in the     contract. Revenue should be recognised when the sole performance obligation has been fulfilled    as defined in the contract. The revenue from providing services is recognised in the accounting period in which theservices are rendered and the revenue to be recognised in future periods is recorded in deferred income.
For support services being provided to customers for a particular time period, a contract is formed between the customer and supplier when a contract is signed by both parties. The distinct performance obligation can be readily identified by the services defined in the contract over a fixed period. The transaction price is the total stated in the contract/invoice, excluding sales tax. Revenue should be recognised over the term of the contract when the performance obligation has been satisfied as defined in the contract. The revenue from providing services is recognised in the accounting period in which the services are rendered and the revenue which to be   recognised in future periods is recorded in deferred income.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Interest payable and similar expenses

Interest payable primarily includes finance cost on deferred income. The finance cost results from the deferred income being measured at the present value of futher receipts discounted at a market rate of interest.

Page 18

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Material accounting policy information (continued)

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 19

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Material accounting policy information (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Right-of-use assets
-
over term of the lease
Leasehold improvements
-
over term of the lease
Plant and machinery
-
5 years
Fixtures and fittings
-
5 years
Office equipment
-
5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.10

Work in progress

The cost of work in progress comprises design costs, raw materials, direct labour, other direct   costs and related production overheads (based on normal operating capacity), that relate to  revenue that  will be recognised in future periods. Recognition and release of work in progress depends on the  timing of the work performed and the timing of the corresponding revenue being recognised. 

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any expected credit losses. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than ninety days from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 20

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Material accounting policy information (continued)

 
2.13

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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.
Judgement - Deferred tax assets
The recognition of the deferred tax assets is dependent on there being sufficient probable future taxable profits against which the assets could be utilised. The company recognises a partial deferred tax asset on tax losses and other timing differences in the current year based on making an expected profit in year ended 31 March 2025. Given the level of uncertainty in the current economic environment and the uncertainty this creates for medium term taxable profit forecasts, management continues to consider it appropriate not to recognise deferred tax assets beyond this time period.
Page 21

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

The whole of the turnover is attributable to service income from outside the UK which breaks down by geographical destination as follows:


2024
2023
£
£

Europe
33,917,869
10,312,268

Asia
1,733,187
3,104,087

Australasia
49,807
1,378,497

North America
5,517,501
-

41,218,364
14,794,852





5.


Other operating (losses)/gains

2024
2023
£
£

Foreign exchange difference - (loss)/gain
(1,435,007)
1,809,164



6.


Operating loss

The operating loss is stated after charging / (crediting):

2024
2023
£
£

Depreciation of tangible fixed assets
706,040
619,055

Exchange differences
1,435,007
(1,809,164)

Defined contribution pension cost
775,930
876,529


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
295,000
110,000

Page 22

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
8,422,420
6,798,927

Social security costs
1,002,729
706,510

Cost of defined contribution scheme
775,930
876,529

10,201,079
8,381,966


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production
66
56



Admin
11
11

77
67


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
1,134,972
1,016,171

Company contributions to defined contribution pension schemes
59,623
58,999

1,194,595
1,075,170


The highest paid director received remuneration of £933,506 (2023 - £806,136).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £59,623 (2023 - £58,999).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
756,249
-

756,249
-

Page 23

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Interest payable and similar expenses

2024
2023
£
£


Finance cost on right-of-use assets
74,160
40,329

74,160
40,329


12.


Tax on loss


2024
2023
£
£

Corporation tax


Adjustments to tax charge in respect of prior periods
-
96,534


-
96,534

Foreign tax


Foreign tax on income for the year
275,283
-

275,283
-

Total current tax
275,283
96,534

Deferred tax


Origination and reversal of timing differences
349,936
(290,126)

Total deferred tax
349,936
(290,126)


Tax on loss
625,219
(193,592)


Page 24

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
12.Tax on loss (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Loss before tax
(554,898)
(9,516,652)


Loss before tax multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
(138,725)
(1,808,164)

Effects of:


Expenses not deductible for tax purposes
367
36,505

Fixed asset differences
28,003
16,484

Other tax adjustments, reliefs and transfers
(28,003)
(30,451)

Adjustments to tax charge in respect of prior periods
98,818
96,534

Other differences
(68,750)
-

Foreign tax credits
275,283
-

Remeasurement of deferred tax for changes in tax rates
-
(563,882)

Movement in deferred tax not recognised
458,226
2,059,382

Total tax charge for the year
625,219
(193,592)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Tangible assets





Right-of-use assets
Plant and machinery
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
1,968,368
2,841
1,195,003
442,007
3,608,219


Additions
-
-
20,877
24,154
45,031


Disposals
-
-
-
(10,235)
(10,235)



At 31 March 2024

1,968,368
2,841
1,215,880
455,926
3,643,015



Accumulated depreciation


At 1 April 2023
196,837
2,273
247,683
293,215
740,008


Charge for the year on owned assets
-
568
224,821
86,977
312,366


Charge for the year on right-of-use assets
393,673
-
-
-
393,673


Disposals
-
-
-
(9,600)
(9,600)


Adjustments
-
-
-
(112,013)
(112,013)



At 31 March 2024

590,510
2,841
472,504
258,579
1,324,434



Net book value



At 31 March 2024
1,377,858
-
743,376
197,347
2,318,581



At 31 March 2023
1,771,531
568
947,320
148,792
2,868,211

The above right-of-use assets all relate to short-term leasehold property.


14.


Work in progress

2024
2023
£
£

Work in progress (goods to be sold)
321,368
-

321,368
-


Work in progress recognised in cost of sales during the period as an expense was £24,514,815 (2023: £17,847,308). The write-down of work in progress recognised as an expense during the period amounted to £1,031,328 (2023: £1,047,545). 


Page 26

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Debtors

2024
2023
£
£

Due after more than one year

Other debtors
9,618
10,565

9,618
10,565


2024
2023
£
£

Due within one year

Amounts owed by group undertakings
41,687,402
46,834,571

Other debtors
833,680
939,915

Prepayments and accrued income
1,068,736
1,368,290

Deferred taxation
55,372
405,308

43,645,190
49,548,084


Amounts owed to group undertakings are unsecured, interest free and are repayable on demand. No interest is payable on outstanding trading balances.


16.


Cash at bank and in hand

2024
2023
£
£

Cash at bank and in hand
40,599,307
31,955,237

40,599,307
31,955,237


Page 27

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Creditors: Amounts falling due within one year

2024
2023 Restated
£
£

Trade creditors
2,327,636
6,263,260

Amounts owed to group undertakings
48,791,806
58,703,258

Other taxation and social security
240,788
256,476

Lease liabilities
432,869
417,009

Accruals and deferred income*
12,926,496
10,968,423

64,719,595
76,608,426


Amounts owed to group undertakings are unsecured, interest free and are repayable on demand. No interest is payable on outstanding trading balances.
*Refer Note 25 for further details of the restatement. The impact of the restatement extends to disclosures within Notes 18 and 19, as well.


18.


Creditors: Amounts falling due after more than one year

2024
2023 Restated
£
£

Lease liabilities
1,155,847
1,588,438

Deferred income*
57,900,891
42,002,702

59,056,738
43,591,140


*Refer Note 25 for further details of the restatement. The impact of the restatement extends to disclosures within Notes 17 and 19, as well.

Page 28

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.

Deferred income

2024
2023 Restated
        £
        £
Amounts falling due within one year*

8,485,461

5,795,406

Amounts falling due after more than one year*

57,900,891

42,002,702


66,386,352

47,798,108


The deferred income is the services to be recognised in the future period.
*Refer Note 25 for further details of the restatement. The impact of the restatement extends to disclosures within Notes 17 and 18, as well.


20.


Lease liabilities


Future minimum lease payments for:

2024
2023
£
£


Within one year
486,395
486,395

Between 1-5 years
1,215,988
1,702,383

1,702,383
2,188,778


The present value of minimum lease payments is analysed as follows:

2024
2023
£
£


Within one year
432,869
417,009

Between 1-5 years
1,155,569
1,588,438

1,588,438
2,005,447

The total cash outflow for leases during the year was £486,395 (2023: £nil) due to a rent free period as agreed in the contractual arrangements.







Page 29

 
TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Deferred taxation




2024
2023


£

£






At beginning of year
405,308
115,182


(Charged)/credited to profit or loss
(349,936)
290,126



At end of year
55,372
405,308

The deferred tax asset is made up as follows:

2024
2023
£
£


Fixed asset temporary differences
55,372
129,228

Short term temporary differences
-
17,670

Losses and other deductions
-
258,410

55,372
405,308


22.


Other provisions




Dilapidations provision

£





At 1 April 2023
18,082


Charged to profit or loss
115,317



At 31 March 2024
133,399

The Company recognised a dilapidation provision under the terms of the lease agreement of the Turnmill Street office for the lease that commenced in October 2022.


23.


Called up share capital

2024
2023
£
£
Allotted, called up and fully paid



4,500 (2023 - 4,500) Ordinary Share Capital shares of £1,000.00 each
4,500,000
4,500,000


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TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

24.


Profit and loss account

The profit and loss account constitutes the cumulative total of all current and prior period profits and
losses.


25.


Prior year adjustment

In 2024 it was identified that there had been an error in the split of deferred income within creditors amounts falling due within one year and amounts falling due after more than one year. The error has a material impact on the prior period.
Therefore, the respective balances outlined below have been restated. There is no impact to the Statement of Comprehensive Income. The error has been corrected by restating each of the affected
financial statement line items for the prior period as follows:

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26.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £775,930 (2023: £876,529). Contributions totalling £nil (2023: £nil) were payable to the fund at the balance sheet date and are included in other creditors.

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TOYOTA CONNECTED EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

27.


Controlling party

The Company's immediate parent company is Toyota Connected Corporation. Its ultimate parent undertaking and controlling party is Toyota Motor Corporation
The smallest and largest group in which the Company is a member of and which the financial statements are consolidated into is Toyota Motor Corporation. Its registered office address is 1 Toyota-Cho, Toyota City, Aichi Prefecture, Japan 471-8571 where copies of the consolidated financial statements can be obtained.

Page 32