GSK results comment

As THE multinational GlaxoSmithKline reports full year results Helal Miah, investment research analyst at The Share Centre, has offered an opinion as to what they mean for investors.

He said: “GSK’s full year results are largely in line with expectations, with 2012 figures generally flat compared to 2011.

“In a challenging operating environment unsurprisingly sales in Europe took the biggest hit, falling more than expected, down seven per cent. The company’s investment in emerging markets is paying off. with the region making up for the losses, showing strong sales growth of 10 per cent

“Investors will be pleased to see new drugs coming to the market and the company’s confidence of improving R&D returns to 14 per cent.

“We continue to recommend investors buy GSK for stability in a portfolio. The yield is attractive at over five per cent and the growth story also looks to be improving. Earnings per share growth in 2013 is expected to be three to four per cent which is positive for investors. The business is very cash generative and is committed to using this to increase dividends, share buybacks and bolt-on acquisitions, which are expected to continue to in 2013.”