Provident Financial - Interim Report & Accounts 2005

1. General information

Following the adoption of IAS Regulation EC 1606/2002 on 19 July 2002 by the European Parliament, Provident Financial plc (‘the group’), along with all other European listed entities, will be required to prepare consolidated accounts in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union (EU) for years beginning 1 January 2005.

The group will apply IFRS for the year ended 31 December 2005, and will prepare one year of comparative figures under IFRS. Accordingly the group’s date of transition to IFRS is 1 January 2004 and its first reporting period under IFRS is for the half-year ended 30 June 2005. This report therefore contains the consolidated financial results for the half-year ended 30 June 2005 on the basis of the IFRS accounting policies as described in note 4, and comparatives for the half-year ended 30 June 2004 and for the year ended 31 December 2004 restated to comply with these accounting policies.

Reconciliations between previously reported UK GAAP results and IFRS as adopted are presented in note 13.

This financial information does not constitute a set of statutory accounts and is unaudited. This document (the 2005 interim report) is published on the company’s website in addition to the normal paper version. The maintenance and integrity of the Provident Financial website is the responsibility of the directors and the work carried out by the auditors does not involve consideration of these matters. Legislation in the UK governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.