Shares in junior financial technology business ThinkSmart Limited (ASX: TSM) are up a whopping 30% today after the group posted a profit upgrade thanks to strong growth at its UK operations.

The company estimates that operating net profit will be between $4.5 million to $5.5 million for the full year ending June 30 2016. Using the mid-point of the forecast range as guidance produces a profit uplift of 43% over the prior year’s result of $3.5 million.

ThinkSmart operates in the business-to-business and business-to-consumer space by offering technology that helps retailers improve sales, or deliver new and superior products to their clients.

This is a competitive space, but the strong growth in the UK delivered by double-digit growth in business volumes suggests the business has potential.

Its primary client is UK electronics distributor and retailer Dixons Carphone Group. The business relationship was recently extended until 2019 and the strong growth as a result of ThinkSmart’s prior investment holds promise for the future.

At its current price of 49 cents the business is trading on 18x trailing earnings per share of 2.73 cents, with forecasts for a strong profit uplift in the year ahead. This would suggest the business is not overly valued even after today’s 30% rise assuming it can deliver on the forecast profit growth.

Investors must remember risks remain however, as the business is quite leveraged to its big client in Dixons, while the UK economy and retail sales as a whole remains something of a mixed bag.

Other technology businesses growing into the UK include financial services software operator GBST Holdings Limited (ASX: GBT) and mobile marketing and payments group Mobile Embrace Ltd (ASX: MBE).

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Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.