Bradford-based home credit lending giant Provident Financial was today tipped to overcome the disappointment of dropping out of the index of the UK's top 100 companies.

The firm fell out of the FTSE 100 over the festive period as had been widely predicted by stockmarket analysts.

But today stockbroker Chris Bragg of Leeds-based Redmayne-Bentley said Provident Financial, which yesterday slumped to number 116 in the rankings, would still deliver healthy profits in line with expectations.

He said the fall was more due to the performance of rival businesses such as British Airways, which had also dropped out of the FTSE 100 but has since seen its share price treble.

Provident only entered the FTSE 100 in March this year and its share price has continued to perform well since it joined.

"The fact is that its just a measure of relative performance and how they rate in terms of capitalisation," said Mr Bragg.

"Provident Financial have always been there or thereabouts."

But Mr Bragg admitted that the fall would be a blow to the company's prestige and had hit its share price further because tracker funds would no longer be invested.

"There has been a lot of research into the company and it is widely tipped to continue to do well," he said.

"It is certainly expected to increase its profits for its year ending December 31."

He added that market analysts were confident the growth of its overseas credit business would see the firm top the £200 million profit mark in 2004.

Bradford Chamber of Commerce president Roland Clark admitted it was disappointing to lose a Bradford company from the prestigious index.

But he said: "It is still the same company the day after it happens as the day before. It is an equally good company and it is really just a reflection of the way the system works.

"It is really nice for Bradford to have its companies up there, but I am still impressed by how many companies there are from Bradford in the top 100."

Shares in Provident Financial were today trading at 657p.