The Company's Cost Efficiency program has been in place for over 2 years. As indicated at the time of the 1H05 Results, the cost efficiency program has achieved its targets one year earlier than planned. This achievement has been particularly pleasing given that:
• a number of one-off costs were incurred in 2H05 in connection with the establishment and implementation of specific cost efficiency initiatives impacting FY06 – FY08; and
• the Cost Efficiency targets were achieved without taking into account the added benefit of the approximate $6 million reduction in depreciation expense in 2H05 resulting from the Company's review of the useful life of all plant, equipment and software. (This reduction in depreciation expense equates to a corresponding increase to PAT* of just over $4 million in 2H05).
Total spend on Capital Expenditure for FY05 was less than $40 million, well under the cap of $50 million set at the Strategic Review in June 2003 and represents a 20 percent productivity improvement on the Company's FY04 spend.
David Jones is not only Australia's oldest department store, but the oldest department store in the world still trading under its original name. A short history of the company, from 1838 to the present, follows: if interested in one particular era or event, just click on the relevant date on the timeline, and it will take you straight there.
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