The ALS (ASX:ALQ) share price gained 17% in May. Here's why

With a share price jump of 12% in one day alone, May was a good month for ALS shareholders.

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The ALS Ltd (ASX: ALQ) share price was one of the S&P/ASX 200 Index (ASX: XJO)'s best performers of last month. Shares in ALS ended May 17.4% higher than where they started.

The global testing, inspection and certification company's shares were driven by a debt refinancing agreement and its full-year results.

Let's take a look at the month that was for the ALS share price.

people celebrating with arms raised and happy faces

Image source: Getty Images

A productive May for the ALS share price

Debt refinancing

Early in May, ALS stated it had agreed to refinance its bank debt with multi-currency, "geographically diverse" revolving facilities.

The company's debt is valued at US$350 million.

The banks involved in the new facilities include ASX-listed Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corporation (ASX: WBC).

JP Morgan and the Bank of America (NYSE: BAC) are also involved in the facilities.

ALS stated the refinancing would provide more liquidity, and better support its growth strategy and funding requirements.

Full-year results

On the day ALS released its full-year results, the company's share price closed 12.8% higher than it did in the previous session.

ALS' results included 25% more earnings before interest, tax, depreciation, and amortisation (EBITDA) than the previous year.

A fall in both revenue and expenses saw ALS bring in $421.1 million over the 12 months ended 31 March 2021.

ALS said its decreased revenue was mainly caused by the Australian dollar's gains.

After expenses, ALS recorded a $174.1 million profit for the period.

The company will provide its shareholders with a fully franked interim dividend of 8.5 cents per share and a final 70% franked dividend of 14.6 cents.

The company also announced it has committed to repaying any COVID-19-related subsidies it has been given from various governments.

ALS share price snapshot

The ALS share price's performance over May continues its solid streak across 2021.

Currently, the ALS share price has gained 26.9% since the start of the year. It's also 70.6% higher than it was at this time last year.

The company has a market capitalisation of around $6 billion, with approximately 482 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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