UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                     Washington, DC  20549


                           FORM 8-K



                       CURRENT REPORT



           PURSUANT TO SECTION 13 OR 15(d) OF THE
               SECURITIES EXCHANGE ACT OF 1934



Date of Report (Date of earliest event reported) July 22, 2004


                   NICHOLAS FINANCIAL, INC.
    (Exact name of registrant as specified in its Charter)


   British Columbia, Canada        0-26680         8736-3354
(State or Other Jurisdiction of  (Commission   (I.R.S. Employer
 Incorporation or Organization)   File Number)  Identification No.)

  2454 McMullen Booth Road, Building C
    Clearwater, Florida                           33759
  (Address of Principal Executive Offices)      (Zip Code)


                        (727) 726-0763
     (Registrant's telephone number, Including area code)


                        Not applicable

    (Former name, former address and former fiscal year, if
                 changed since last report)

<PAGE> 2




Item 12.    Results of Operations and Financial Condition

     Nicholas Financial, Inc., (NASDAQ:NICK) today announced
record revenue and earnings for the first quarter ended June
30, 2004. The Company reported that net income increased 40%
to  $1,632,392 for the three months ended June 30,  2004  as
compared  to $1,165,975 for the three months ended June  30,
2003. Earnings per share increased 23% to $0.27  as compared
to  $0.22 for the three months ended June 30, 2003.  Revenue
for  the  first  quarter  increased  20%  to  $7,276,655  as
compared  to $6,060,031 for the three months ended June  30,
2003.



Item 7.   Financial Statements and Exhibits

Exhibit #    Description

 99          Press release dated July 22, 2004, announcing
             record revenue and earnings for the first
             quarter ended June 30, 2004.

<PAGE> 3


                         SIGNATURES

   Pursuant  to the requirements of the Securities  Exchange
Act  of 1934, the Registrant has duly caused this Report  to
be  signed  on its behalf by the undersigned, hereunto  duly
authorized.


                  NICHOLAS FINANCIAL, INC.
                        (Registrant)


 Date: July 22, 2004           /s/ Peter L. Vosotas
                               Peter L. Vosotas
                               Chairman, President,
                               Chief Executive Officer
                               (Principal Executive Officer)


    Date: July 22, 2004        /s/ Ralph T. Finkenbrink
                               Ralph T. Finkenbrink
                               (Principal Financial Officer
                                and Accounting Officer)

<PAGE> 4

Exhibit Index

Exhibit     Description

 99        Press release dated July 22, 2004, announcing
          record revenue and earnings for the first quarter
          ended June 30, 2004.


<PAGE> 5

Exhibit 99


                                         FOR IMMEDIATE RELEASE

Nicholas Financial, Inc.
Corporate Headquarters

2454 McMullen-Booth Rd.
Building C, Suite 501
Clearwater, FL 33759

Contact: Ralph Finkenbrink
         Sr.Vice President, CFO

NASDAQ: NICK
Web Site: www.nicholasfinancial.com
Ph # - 727-726-0763





Nicholas Financial Reports Record 1st Quarter Results



Clearwater,  Florida,  - July 22, 2004  Nicholas  Financial,
Inc.,  (NASDAQ:NICK)  today  announced  record  revenue  and
earnings  for  the first quarter ended June  30,  2004.  The
Company reported that net income increased 40% to $1,632,392
for  the  three  months ended June 30, 2004 as  compared  to
$1,165,975  for  the  three  months  ended  June  30,  2003.
Earnings  per share increased 23% to $0.27  as  compared  to
$0.22 for the three months ended June 30, 2003. Revenue  for
the first quarter increased 20% to $7,276,655 as compared to
$6,060,031 for the three months ended June 30, 2003.     The
Company has now  reported  same  quarter  record   increases
for revenue and earnings in 55 out of the past 56 quarters.


The  Company will hold its 2004 Annual Meeting on August 11,
2004  in Clearwater, Florida at the Countryside Country Club
at 10 AM.

Founded in 1985, with assets of $108,600,000 as of June  30,
2004,  Nicholas  Financial is one of  the  largest  publicly
traded  specialty consumer finance companies  based  in  the
Southeast.  The Company presently operates out of 32  branch
locations in both the Southeast and the Mid-West States. The
Company  has approximately 6,500,000 shares of common  stock
outstanding. For an index of Nicholas Financial Inc.'s  news
releases or to obtain a specific release, visit our web site
at www.nicholasfinancial.com.



Except  for  the historical information contained herein,  the
matters discussed in this news release include forward-looking
statements  that  involve  risks and  uncertainties  including
competitive factors, the management of growth, and other risks
detailed  from  time  to  time in the  Company's  filings  and
reports  with the Securities and Exchange Commission including
the  Company's Annual Report on Form 10-KSB for the  year  ended
March  31,  2004. Such statements are based on the beliefs  of
the  Company's management as well as assumptions made  by  and
information currently available to Company management.  Actual
events or results may differ materially.


<PAGE> 6

Nicholas Financial, Inc.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)

<TABLE>
<CAPTION>
                              Three Months Ended June 30,
                                   2004           2003
                            -------------------------------
<S>                          <C>            <C>
Revenue:

 Finance charge income        $   7,214      $   5,988
 Other income                        63             72
                              ---------      ---------
                                  7,277          6,060
Costs and expenses:

 General & Administrative
   Expenses                       3,157          2,614
 Provision for losses               581            580
Interest expense                    915            987
                              ---------      ---------
                                  4,653          4,181

Income before income taxes        2,624          1,879
Income tax provision                992            713
                              ---------      ---------
 Net income                     $ 1,632       $  1,166
                              =========      =========
Earnings per share:
 Basic                          $  0.29       $   0.23
                              =========      =========
 Diluted                        $  0.27       $   0.22
                              =========      =========

Weighted average shares       5,669,552      5,006,926
                              =========      =========
Weighted average shares and
 assumed dilution             6,063,622      5,300,458
                              =========      =========


Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)

                               June 30,       March 31,
                                 2004           2004


Cash                          $   1,781      $     958
Finance receivables, net        102,031         97,237
Other assets                      4,788          5,028
                             ----------      ----------
 Total assets                 $ 108,600      $ 103,223
                              =========      =========

Line of credit                $  60,060      $  67,510
Other notes payable                 630            682
Other liabilities                 7,886          7,585
                             ----------      ----------
 Total liabilities               68,576         75,777

Shareholders' equity             40,024         27,446
                             ----------      ----------
Total liabilities and
 Shareholders' equity         $ 108,600      $ 103,223
                              =========      =========

</TABLE>

<PAGE> 7


<TABLE>
<CAPTION>

Portfolio Summary
                               Three months ended June 30,
                                    2004       2003
                              ------------------------------
<S>                            <C>           <C>

Average finance receivables,
net of unearned interest (1)    $123,025,445  $107,212,467
                                ===========================
Average indebtedness (2)          63,714,820    62,239,301
                                ===========================
Finance revenue (3)                7,214,258     5,988,473
                                ===========================
Interest expense                     915,320       987,328
                                ---------------------------
Net finance revenue                6,298,938     5,001,145
                                ===========================
Weighted average contractual
rate (4)                              24.29%        24.10%
                                ===========================
Average Cost of Borrowed Funds(2)      5.75%         6.35%
                                ===========================
Gross Portfolio Yield (5)             23.46%        22.34%

Interest expense as a percentage
of average finance receivables,
net of unearned interest               2.98%         3.68%

Provision for credit losses as a
percentage of average finance
receivables, net of unearned
interest                               1.89%         2.16%
                                ---------------------------
Net portfolio yield (5)               18.59%        16.50%

Operating expenses as a
percentage of average finance
receivables, net of unearned
interest (6)                          10.04%         9.43%
                                ---------------------------

Pre-tax yield as a percentage of
average finance receivables, net
of unearned interest (7)               8.55%         7.07%
                                ===========================

Write-off to liquidation (8)           5.46%         7.76%

Net charge-off percentage (9)          4.65%         6.64%

</TABLE>

(1) Average  finance receivables, net of unearned  interest,
    represents  the  average of gross  finance  receivables,
    less unearned interest throughout the period.

(2) Average  indebtedness represents the average outstanding
    borrowings  under  the  Line and  notes  payable-related
    party.    Average  cost  of  borrowed  funds  represents
    interest   expense   as   a   percentage   of    average
    indebtedness.

(3) Finance  revenue does not include revenue  generated  by
    Nicholas Data Services, Inc.("NDS")   the  wholly  owned
    software subsidiary of Nicholas Financial, Inc.

(4) Weighted   average  contractual  rate   represents   the
    weighted  average annual percentage rate  (APR)  of  all
    Contracts  purchased and direct loans originated  during
    the   three   months   ended   June   30, 2004 and 2003,
    respectively.

(5) Gross portfolio yield represents finance revenues  as  a
    percentage  of  average  finance  receivables,  net   of
    unearned   interest.  Net  portfolio  yield   represents
    finance  revenue minus (a) interest expense and (b)  the
    provision  for credit losses as a percentage of  average
    finance receivables, net of unearned interest.

(6) Operating   expenses  represent  total  expenses,   less
    interest  expense, the provision for credit  losses  and
    operating costs associated with NDS.

(7) Pre-tax  yield  represents  net  portfolio  yield  minus
    operating  expenses as a percentage of  average  finance
    receivables, net of unearned interest.

(8) Write-off  to liquidation  percentage  is  defined    as
    net  charge-offs divided by liquidation. Liquidation  is
    defined  as  beginning receivable balance  plus  current
    period  purchases  minus  voids  and  refinances   minus
    ending receivable balance.

(9) Net charge-off percentage  represents  net   charge-offs
    divided   by   average   finance   receivables,  net  of
    unearned interest, outstanding during the period.

Note:	All three month key performance indicators expressed as
     percentages have been annualized.

<PAGE> 8

The  following tables present certain information  regarding
delinquency rates experienced by the Company with respect to
Contracts and under its direct loan program.

<TABLE>
<CAPTION>
                                    At June 30,
                              2004              2003
                            ---------           ------
<S>                 <C>   <C>   <C>     <C> <C>     <C>
Contracts
Gross Balance Outstanding  $159,959,107     $138,823,707

                       Dollar              Dollar
Delinquencies          Amount   Percent    Amount   Percent
-------------        ---------------------------------------
30 to 59 days        $2,704,294   1.69%  $2,647,022   1.91%
60 to 89 days           539,691   0.34%     736,415   0.53%
90  +  days             219,687   0.14%     307,405   0.22%
                      ---------   -----  ----------   -----
Total Delinquencies  $3,463,672   2.17%  $3,690,842   2.66%

Direct Loans
Gross Balance Outstanding    $4,726,746       $4,346,709

Delinquencies
-------------
30 to 59 days           $26,903   0.57%     $49,582   1.14%
60 to 89 days            20,089   0.43%      12,760   0.29%
90  +  days              26,998   0.57%      38,609   0.89%
                       --------   -----     -------   -----
Total Delinquencies     $73,990   1.57%    $100,951   2.32%

</TABLE>

The amounts shown in the table below represent the amount of
finance receivables purchased, net of unearned interest.

<TABLE>
<CAPTION>
            --------------------------------------
                      Three Months  Ended June 30,
             State           2004         2003
            --------------------------------------
            <S>       <C>            <C>
              FL       $11,020,839    $10,148,495
              GA         2,510,543      2,331,056
              NC         2,153,230      1,998,035
              SC         1,134,618        760,698
              OH         3,251,208      3,125,301
              MI           951,131        455,534
              VA         1,377,750         17,040
                      ----------------------------
            Total      $22,399,319    $18,836,159
                      ============================

</TABLE>

The  following  table  represents information  on  Contracts
purchased by the Company, net of unearned interest:

<TABLE>
<CAPTION>

                        Three months ended June 30,
       Contracts             2004          2003
       ------------------------------------------------
       <S>              <C>           <C>
       Purchases        $22,399,319    $18,836,159
       Weighted APR          24.11%         23.90%
       Average Discount       8.76%          8.96%
       Average Term(months)      44             44
       Average Loan          $8,275         $8,186
       Number of Contracts    2,707          2,301
       -------------------------------------------------

</TABLE>
[{"type": "8-K", "sequence": "1", "filename": "r8k-040722.txt", "secsgml_size_bytes": 15311}]
{"company-data": {"conformed-name": "NICHOLAS FINANCIAL INC", "cik": "0001000045", "assigned-sic": "6153", "irs-number": "593019317", "state-of-incorporation": "FL", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26680", "film-number": "04925563"}, "business-address": {"street1": "2454 MCMILLEN BOOTH RD", "street2": "BLDG C 501 B", "city": "CLEARWATER", "state": "FL", "zip": "33759", "phone": "8137260763"}, "mail-address": {"street1": "2454 MCMULLEN BOOTH RD", "street2": "BLDG C SUITE 501B", "city": "CLEARWATER", "state": "FL", "zip": "33759"}}
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                     Washington, DC  20549

                           FORM 8-K

                       CURRENT REPORT

           PURSUANT TO SECTION 13 OR 15(d) OF THE
               SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) July 22, 2004

                   NICHOLAS FINANCIAL, INC.
    (Exact name of registrant as specified in its Charter)

   British Columbia, Canada        0-26680         8736-3354
(State or Other Jurisdiction of  (Commission   (I.R.S. Employer
 Incorporation or Organization)   File Number)  Identification No.)

  2454 McMullen Booth Road, Building C
    Clearwater, Florida                           33759
  (Address of Principal Executive Offices)      (Zip Code)

                        (727) 726-0763
     (Registrant's telephone number, Including area code)

                        Not applicable

    (Former name, former address and former fiscal year, if
                 changed since last report)
2

Item 12.    Results of Operations and Financial Condition

     Nicholas Financial, Inc., (NASDAQ:NICK) today announced
record revenue and earnings for the first quarter ended June
30, 2004. The Company reported that net income increased 40%
to  $1,632,392 for the three months ended June 30,  2004  as
compared  to $1,165,975 for the three months ended June  30,
2003. Earnings per share increased 23% to $0.27  as compared
to  $0.22 for the three months ended June 30, 2003.  Revenue
for  the  first  quarter  increased  20%  to  $7,276,655  as
compared  to $6,060,031 for the three months ended June  30,
2003.

Item 7.   Financial Statements and Exhibits

Exhibit #    Description

 99          Press release dated July 22, 2004, announcing
             record revenue and earnings for the first
             quarter ended June 30, 2004.
3

                         SIGNATURES

   Pursuant  to the requirements of the Securities  Exchange
Act  of 1934, the Registrant has duly caused this Report  to
be  signed  on its behalf by the undersigned, hereunto  duly
authorized.

                  NICHOLAS FINANCIAL, INC.
                        (Registrant)

 Date: July 22, 2004           /s/ Peter L. Vosotas
                               Peter L. Vosotas
                               Chairman, President,
                               Chief Executive Officer
                               (Principal Executive Officer)

    Date: July 22, 2004        /s/ Ralph T. Finkenbrink
                               Ralph T. Finkenbrink
                               (Principal Financial Officer
                                and Accounting Officer)
4

Exhibit Index

Exhibit     Description

 99        Press release dated July 22, 2004, announcing
          record revenue and earnings for the first quarter
          ended June 30, 2004.
5

Exhibit 99

                                         FOR IMMEDIATE RELEASE

Nicholas Financial, Inc.
Corporate Headquarters

2454 McMullen-Booth Rd.
Building C, Suite 501
Clearwater, FL 33759

Contact: Ralph Finkenbrink
         Sr.Vice President, CFO

NASDAQ: NICK
Web Site: www.nicholasfinancial.com
Ph # - 727-726-0763

Nicholas Financial Reports Record 1st Quarter Results

Clearwater,  Florida,  - July 22, 2004  Nicholas  Financial,
Inc.,  (NASDAQ:NICK)  today  announced  record  revenue  and
earnings  for  the first quarter ended June  30,  2004.  The
Company reported that net income increased 40% to $1,632,392
for  the  three  months ended June 30, 2004 as  compared  to
$1,165,975  for  the  three  months  ended  June  30,  2003.
Earnings  per share increased 23% to $0.27  as  compared  to
$0.22 for the three months ended June 30, 2003. Revenue  for
the first quarter increased 20% to $7,276,655 as compared to
$6,060,031 for the three months ended June 30, 2003.     The
Company has now  reported  same  quarter  record   increases
for revenue and earnings in 55 out of the past 56 quarters.

The  Company will hold its 2004 Annual Meeting on August 11,
2004  in Clearwater, Florida at the Countryside Country Club
at 10 AM.

Founded in 1985, with assets of $108,600,000 as of June  30,
2004,  Nicholas  Financial is one of  the  largest  publicly
traded  specialty consumer finance companies  based  in  the
Southeast.  The Company presently operates out of 32  branch
locations in both the Southeast and the Mid-West States. The
Company  has approximately 6,500,000 shares of common  stock
outstanding. For an index of Nicholas Financial Inc.'s  news
releases or to obtain a specific release, visit our web site
at www.nicholasfinancial.com.

Except  for  the historical information contained herein,  the
matters discussed in this news release include forward-looking
statements  that  involve  risks and  uncertainties  including
competitive factors, the management of growth, and other risks
detailed  from  time  to  time in the  Company's  filings  and
reports  with the Securities and Exchange Commission including
the  Company's Annual Report on Form 10-KSB for the  year  ended
March  31,  2004. Such statements are based on the beliefs  of
the  Company's management as well as assumptions made  by  and
information currently available to Company management.  Actual
events or results may differ materially.
6

Nicholas Financial, Inc.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended June 30,
                                   2004           2003
                            -------------------------------
Revenue:

 Finance charge income        $   7,214      $   5,988
 Other income                        63             72
                              ---------      ---------
                                  7,277          6,060
Costs and expenses:

 General & Administrative
   Expenses                       3,157          2,614
 Provision for losses               581            580
Interest expense                    915            987
                              ---------      ---------
                                  4,653          4,181

Income before income taxes        2,624          1,879
Income tax provision                992            713
                              ---------      ---------
 Net income                     $ 1,632       $  1,166
                              =========      =========
Earnings per share:
 Basic                          $  0.29       $   0.23
                              =========      =========
 Diluted                        $  0.27       $   0.22
                              =========      =========

Weighted average shares       5,669,552      5,006,926
                              =========      =========
Weighted average shares and
 assumed dilution             6,063,622      5,300,458
                              =========      =========

Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)

                               June 30,       March 31,
                                 2004           2004

Cash                          $   1,781      $     958
Finance receivables, net        102,031         97,237
Other assets                      4,788          5,028
                             ----------      ----------
 Total assets                 $ 108,600      $ 103,223
                              =========      =========

Line of credit                $  60,060      $  67,510
Other notes payable                 630            682
Other liabilities                 7,886          7,585
                             ----------      ----------
 Total liabilities               68,576         75,777

Shareholders' equity             40,024         27,446
                             ----------      ----------
Total liabilities and
 Shareholders' equity         $ 108,600      $ 103,223
                              =========      =========
7
Portfolio Summary
                               Three months ended June 30,
                                    2004       2003
                              ------------------------------
Average finance receivables,
net of unearned interest (1)    $123,025,445  $107,212,467
                                ===========================
Average indebtedness (2)          63,714,820    62,239,301
                                ===========================
Finance revenue (3)                7,214,258     5,988,473
                                ===========================
Interest expense                     915,320       987,328
                                ---------------------------
Net finance revenue                6,298,938     5,001,145
                                ===========================
Weighted average contractual
rate (4)                              24.29%        24.10%
                                ===========================
Average Cost of Borrowed Funds(2)      5.75%         6.35%
                                ===========================
Gross Portfolio Yield (5)             23.46%        22.34%

Interest expense as a percentage
of average finance receivables,
net of unearned interest               2.98%         3.68%

Provision for credit losses as a
percentage of average finance
receivables, net of unearned
interest                               1.89%         2.16%
                                ---------------------------
Net portfolio yield (5)               18.59%        16.50%

Operating expenses as a
percentage of average finance
receivables, net of unearned
interest (6)                          10.04%         9.43%
                                ---------------------------

Pre-tax yield as a percentage of
average finance receivables, net
of unearned interest (7)               8.55%         7.07%
                                ===========================

Write-off to liquidation (8)           5.46%         7.76%

Net charge-off percentage (9)          4.65%         6.64%
(1) Average  finance receivables, net of unearned  interest,
    represents  the  average of gross  finance  receivables,
    less unearned interest throughout the period.

(2) Average  indebtedness represents the average outstanding
    borrowings  under  the  Line and  notes  payable-related
    party.    Average  cost  of  borrowed  funds  represents
    interest   expense   as   a   percentage   of    average
    indebtedness.

(3) Finance  revenue does not include revenue  generated  by
    Nicholas Data Services, Inc.("NDS")   the  wholly  owned
    software subsidiary of Nicholas Financial, Inc.

(4) Weighted   average  contractual  rate   represents   the
    weighted  average annual percentage rate  (APR)  of  all
    Contracts  purchased and direct loans originated  during
    the   three   months   ended   June   30, 2004 and 2003,
    respectively.

(5) Gross portfolio yield represents finance revenues  as  a
    percentage  of  average  finance  receivables,  net   of
    unearned   interest.  Net  portfolio  yield   represents
    finance  revenue minus (a) interest expense and (b)  the
    provision  for credit losses as a percentage of  average
    finance receivables, net of unearned interest.

(6) Operating   expenses  represent  total  expenses,   less
    interest  expense, the provision for credit  losses  and
    operating costs associated with NDS.

(7) Pre-tax  yield  represents  net  portfolio  yield  minus
    operating  expenses as a percentage of  average  finance
    receivables, net of unearned interest.

(8) Write-off  to liquidation  percentage  is  defined    as
    net  charge-offs divided by liquidation. Liquidation  is
    defined  as  beginning receivable balance  plus  current
    period  purchases  minus  voids  and  refinances   minus
    ending receivable balance.

(9) Net charge-off percentage  represents  net   charge-offs
    divided   by   average   finance   receivables,  net  of
    unearned interest, outstanding during the period.

Note:	All three month key performance indicators expressed as
     percentages have been annualized.
8

The  following tables present certain information  regarding
delinquency rates experienced by the Company with respect to
Contracts and under its direct loan program.
At June 30,
                              2004              2003
                            ---------           ------
Contracts
Gross Balance Outstanding  $159,959,107     $138,823,707

                       Dollar              Dollar
Delinquencies          Amount   Percent    Amount   Percent
-------------        ---------------------------------------
30 to 59 days        $2,704,294   1.69%  $2,647,022   1.91%
60 to 89 days           539,691   0.34%     736,415   0.53%
90  +  days             219,687   0.14%     307,405   0.22%
                      ---------   -----  ----------   -----
Total Delinquencies  $3,463,672   2.17%  $3,690,842   2.66%

Direct Loans
Gross Balance Outstanding    $4,726,746       $4,346,709

Delinquencies
-------------
30 to 59 days           $26,903   0.57%     $49,582   1.14%
60 to 89 days            20,089   0.43%      12,760   0.29%
90  +  days              26,998   0.57%      38,609   0.89%
                       --------   -----     -------   -----
Total Delinquencies     $73,990   1.57%    $100,951   2.32%
The amounts shown in the table below represent the amount of
finance receivables purchased, net of unearned interest.
--------------------------------------
                      Three Months  Ended June 30,
             State           2004         2003
            --------------------------------------
FL       $11,020,839    $10,148,495
              GA         2,510,543      2,331,056
              NC         2,153,230      1,998,035
              SC         1,134,618        760,698
              OH         3,251,208      3,125,301
              MI           951,131        455,534
              VA         1,377,750         17,040
                      ----------------------------
            Total      $22,399,319    $18,836,159
                      ============================
The  following  table  represents information  on  Contracts
purchased by the Company, net of unearned interest:
Three months ended June 30,
       Contracts             2004          2003
       ------------------------------------------------
Purchases        $22,399,319    $18,836,159
       Weighted APR          24.11%         23.90%
       Average Discount       8.76%          8.96%
       Average Term(months)      44             44
       Average Loan          $8,275         $8,186
       Number of Contracts    2,707          2,301
       -------------------------------------------------