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of input cost changes were not particularly significant with regard to the year-on-year variation in gross margin. 

Expenses, excluding depreciation, amortisation and financing costs, increased by $15.0m (9.8%). This was a decrease as a percentage of sales from 44.1% to 43.8%, but there was a favourable movement in the NZD:AUD cross rate during the year. 

Across the year: 

Property rent increased by $4.2m (10.6%) and was unchanged as a % of sales (11.4%). When reviewed prior to adjusting for the impact of exchange rates, rent in Australia did increase as a % of sales by c.40bps, as we continued our planned strategy of opening stores in higher cost but ultimately more profitable locations. 

All other operating expenses reduced by 30 bps as a % of sales, largely as a result of operating cost efficiencies in distribution and advertising. Excluding advertising costs, operating expenses increased slightly as a % of sales due to the increased weighting of our Australian retail stores. 

We continued to increase necessary operating and capital expenditure to support growth in the online sales channel, and the uplift in expenses relating to online partially offset the savings in other operating costs as a % of sales. 

Our expectation with regard to the core Australasian business remains that the pattern of reducing overheads as a % of sales in areas such as warehousing and distribution, will be approximately offset by increasing store rental, retail direct costs and online costs. 

Operating expenses were similar in total dollars between the first half and second half of FY2013. We expect our trading pattern and resulting earnings profile for the Australasian market between first half and second half in each financial year to continue. Specifically, our c.40/60 split of total sales between two half years matched with operating costs that are incurred on close to a 50/50 basis for the same periods, will mean Australasian earnings growth will continue to be primarily determined by performance in the second half of each financial year. 

Our level of capital expenditure in FY2013 was very similar to the prior year, after adjusting for $2.2m of FY2012 spend that related to projects completed in FY2013. Our average spend per completed capital project was not as high as anticipated. 

This was mainly attributable to effective management of the cost of new and existing store projects, along with later than planned timing of spend on major systems projects. 

We opened seven more permanent stores in FY2013 than in FY2012, and also completed more relocation and refurbishment projects than in the prior year. Depreciation and amortisation expense increased by $1.1m, 11.6%. We are forecasting to increase capital expenditure in FY2014, and our planned capital projects mean that we will maintain an annual capital expenditure spend of $20m or more for several years ahead. 

We recently extended our existing bank facilities for a further year to the end of 2015, on slightly improved terms, and with a A$10m increase in facility limits related specifically to increased requirements for rental bonds, guarantees and trade credit instruments. The total available banking facility remains 

