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.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Share Gainers

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.
Share Gainers

3 ASX 200 shares tipped to climb another 35%

These shares have helped push the ASX 200 Index higher.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Boss Energy, Macquarie, Nova Minerals, and WiseTech shares are storming higher today

These shares are climbing more than most on Tuesday. What's going on?

Read more »

Green stock market graph with a rising arrow symbolising a rising share price.
Share Gainers

Guess which ASX mining stock is rocketing 80% today on huge Philippines news

This small-cap ASX mining stock is coming close to doubling its value today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Monash IVF, Pro Medicus, Telix, and Woodside shares are storming higher today

These shares are starting the week in a positive fashion. But why?

Read more »

Man in a business suit leaps off a boulder in front of a blue sky.
Share Gainers

3 ASX 200 stocks surging 13% to 36% in this shortened trading week

Investors sent these three ASX 200 stocks flying higher following the Easter break. But why?

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Amaero, Mesoblast, Telix, and Tivan shares are charging higher today

These shares are ending the week on a high. But why?

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Energy Shares

Up 635% in one year, guess which ASX energy share is rocketing again on Friday

Investors are bidding up this surging ASX energy share again today. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Bendigo Bank, EBR Systems, Strickland, and Woodside shares are rising today

These shares are rising on Thursday. But why? Let's find out.

Read more »