Jan Leschly: Due to retire

Sales of consumer healthcare products, which include Ribena and Horlicks, gained 6%.

Chief executive Jan Leschly, who is to retire with the merger, said: "I am very pleased to report that we have attained our goal of achieving earnings per share growth of around 13% for the year.

"Our strong performance in the year is an indication of the continued momentum of our businesses as we move toward the completion of our proposed merger of equals with Glaxo Wellcome."

Sales at Glaxo Wellcome rose 5%, although that had increased to 6% in the second half, said Sir Richard Sykes.

Sir Richard Sykes: Predicted stronger growth

He added that, with a raft of products due to launch in 2000, the group was well-placed for stronger growth this year.

He dismissed suggestions that the figures showed Glaxo was the weaker partner in the merger.

"SmithKline are at a different place in the cycle and have delivered better results. But these are long term businesses, they are not businesses that run on a year by year basis," said Sir Richard.

Glaxo has been hit by the expiry of the patent on its key ulcer drug Zantac.

However, respiratory products, in particularly asthma therapies, performed very well.

The Flixotide asthma drug saw its sales rise 33% to more than �625m ($1bn).

Sales of antiviral treatments were up 19%. The range includes the Relenza treatment for influenza, which became the centre of controversy last year when the UK government advised NHS doctors against prescribing the drug.

Mr Leschly addressed concerns that the �94bn merger could lead to a "brain drain" of UK scientists.

"I do not think that the new company will have that issue," he said.

"We have these sites both in the US and the UK and there are absolutely no plans to close any of them."

No further news was likely on the deal until the merger document was issued towards the end of April, he added.