The Group has assessed the nature of its joint arrangement under IFRS 11 "Joint Arrangements" and determined it to be a joint venture.
The Group's share of the results of joint ventures is included in the Consolidated income statement and is accounted for using the equity method of accounting. Investments in joint ventures are carried in the Consolidated balance sheet at cost plus post-acquisition changes in the Group's share of the net assets of the entity, less any impairment in value. On transfer of land and/or work-in-progress to joint ventures, the Group recognises only its share of any profits or losses, namely that proportion sold outside the Group.
If the Group's share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the Group does not recognise further losses, unless it has incurred obligations to do so or made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the Group's interest in the entity.
Investment in Joint Ventures
The Group has a 50% equity interest valued at £62.0 million (2014: £67.8 million) in MHE JV Co, a joint venture company, incorporated in the UK, in which Morrisons and Ocado Operating Limited, a subsidiary in the Group are the sole investors. In the current year the Group received a dividend of £8.1 million from MHE JVCo (2014: £nil). In the prior year the Group injected a £6.5 million capital contribution into MHE JV Co to finance the acquisition of CFC2 fixed assets.
The Group's share of profit after tax for the year is detailed as follows:
| ||29 November|
|Group share of revenue||3.1||2.7|
|Group share of expenses, inclusive of tax||(0.8)||(0.3)|
|Group Share of Profit after Tax||2.3||2.4|
At the period end the Group's share of the net assets of MHE JVCo were valued at £62.0 million (2014: £67.8 million) which is arrived at by taking into account the £2.3 million Group share of profit after tax and £8.1 million dividend paid by MHE JVCo to the Group.
For the 52 weeks ended 29 November 2015 the entity, MHE JVCo Limited, has recognised net interest income of £6.2 million (2014: £5.4 million). Costs incurred by MHE JVCo include depreciation of £1.2 million (2014: £0.6 million) and a tax charge of £0.4 million (2014: £nil). Material amounts held on its balance sheet as at 29 November 2015 include of finance lease receivables of £119.4 million (2014: £130.8 million), £8.9 million of property, plant and equipment (2014: £4.8 million), £0.5 million of cash and cash equivalents (2014: £2.7 million), and £5.6 million of trade and other payables (2014: £3.5 million), contributing towards net assets of £124.4 million. Other than as a finance lessor to the Group, MHE JVCo has no other significant operations. The principal place of business is the same as for Ocado Group plc, details of which are provided in Note 1.1.