At 1 April 201875.2
Share of profits of joint ventures6.7
Dividends received from joint ventures(2.2)
Currency translation differences(0.7)
At 31 March 201979.0
Share of losses of joint ventures(38.1)
Less: Losses allocated to other components of long-term interest9.5
Dividends received from joint ventures(4.9)
Currency translation differences1.3
At 31 March 202046.8

The group's interests in joint ventures mainly comprise its 50 per cent interest in Water Plus Group Limited (Water Plus) and its 35.3 per cent interest in AS Tallinna Vesi (Tallinn Water). Water Plus is jointly owned and controlled by the group and Severn Trent PLC under a joint venture agreement. Joint management of Tallinn Water is based on a shareholders' agreement.

The group's total share of Water Plus losses for the year was £51.5 million (2019: £0.4 million share of losses), of which £46.2 million has been recognised in the Income Statement and £5.3 million has not been recognised as at 31 March 2020 (2019: £nil not recognised). The £46.2 million recognised share of losses comprises £36.7 million that has been allocated to the group's equity investment, and £9.5 million allocated to the zero coupon shareholder loan notes extended to Water Plus as these form part of the group's long-term interest in the joint venture. The share of losses recognised against each component of the group's net investment in Water Plus has reduced each of them to £nil at 31 March 2020. Of the £46.2 million recognised share of losses, £32.0 million represents the group's recognised share of Water Plus's losses relating to the COVID-19 pandemic, including the crystallisation of an impairment of goodwill and certain other intangible assets recognised by Water Plus, and a significant incremental charge to recognise additional expected credit losses in relation to trade and other receivables. The remaining £14.2 million relates to the group's share of Water Plus's underlying loss for the year.

As at 31 March 2020, the carrying value of the group's 35.3 per cent interest in Tallinn Water was £46.8 million (2019: £42.4 million). Tallinn Water recognised a provision of EUR 13.2 million in its latest financial statements relating to possible third-party claims. The maximum potential undiscounted payments if potential claims were recognised by the courts would amount to EUR 33.1 million. If the value of actual claims exceed the amount provided in the future this would impact the group's share of profits of the joint venture and the joint venture's carrying value under the equity method of accounting in the period in which this occurs.

Other than the fact that at 31 March 2020 Water Plus did not have any distributable reserves, there are no restrictions on the ability of the group's joint ventures to transfer funds to the group in the form of cash dividends, or to repay loans or advances made by the group.

Details of transactions between the group and its joint ventures are disclosed in note A6.


The company had no investments in joint ventures at either 31 March 2020 or 31 March 2019.