CT Automotive disclosed historic related party agreement

(Sharecast News) - CT Automotive Group announced details of a service agreement with iAqua Watercraft, a wholly-owned subsidiary of iAqua, on Friday. The AIM-traded firm said that under the agreement, which was effective from 1 May 2024, CT Automotive provided engineering and product management services to iAqua and its subsidiaries on a cost-plus basis.

It said the services included the design and development of automobile components and product management support.

The company said it anticipated annual invoicing under the agreement would not exceed $0.1m, with the arrangement deemed profitable for CT Automotive.

CT noted that the agreement constituted a related party transaction under the AIM rules, as its founder and chief executive officer Simon Phillips has a 30% shareholding in iAqua.

The board of CT Automotive, excluding Phillips, had apparently confirmed, after consultation with nominated advisor Singer Capital Markets, that the terms of the agreement were fair and reasonable.

At 1213 GMT, shares in CT Automotive Group were down 2.5% at 39p.

Reporting by Josh White for Sharecast.com.