By Max Clarke

GlaxoSmithKline posted a fourth quarter loss of £476 million, after incurring legal charges of 2.165 billion, due in part to a restructuring of the company in order to deliver annual savings of £2.2 billion by 2012.

Turnover for the quarter neared 7.2 billion, or £28.4 billion for the year, with a loss of 7.5p per share.

Following is GSK Chief Executive Officer Andrew Witty’s Review:

"We have substantially re-engineered GSK’s business model over the last two and a half years, through major restructuring and a rigorous returns-based approach to capital allocation.

"We are also having to deal with long-standing legal cases. There is no doubt that the scale of legal provisioning that has been required is significant. However, I continue to believe that it is in the company’s best interests to resolve this inherent unpredictability and reduce our overall litigation exposure.

"The changes we have made are delivering diversified underlying sales growth, increasing pipeline potential and improved cash generation.

"These elements are at the core of our strategy to address the market challenges we identified and to deliver sustained financial performance. They also speak to what we have created — a balanced, synergistic business with a lower risk profile and the option for significant potential upside from the pipeline.

"All of this is being done with the direct aim of enhancing returns to shareholders through continued dividend growth and other measures such as the new long-term share buy-back programme we initiated today.