TPP Group, the Leeds-based healthcare technology company majority-owned by prominent Conservative donor Frank Hester, recently announced a significant dividend payment of £50 million, a sharp increase from £7 million in 2024. This substantial payout follows a period of robust financial performance, cementing TPP's position as one of the UK's most influential suppliers of NHS software.
In the financial year ending 31 March 2025, TPP's turnover grew by 13% to £97.1 million, with pre-tax profits surging from £17.4 million to £47.4 million. The ensuing £50 million dividend was paid to Frank Hester, who maintains strategic control and owns 75% or more of the company's shares. The company is best known for its flagship clinical software, SystmOne, an electronic patient record (EPR) system utilised by approximately 7,800 NHS organisations, including GP surgeries, community providers, and mental health trusts. This system manages the records of tens of millions of patients and is crucial for facilitating integrated care through secure data sharing.
TPP's success highlights the critical role of digital infrastructure in the NHS, particularly amid ongoing challenges related to interoperability, data sharing, and IT modernisation. Proponents argue that reliable EPR systems enhance patient safety and reduce the administrative burden on clinicians. Despite its commercial success in serving a major public service, TPP's financial strength and political connections have attracted controversy. The firm, along with Frank Hester personally, has donated over £20 million to the Conservative Party since 2023, including approximately £10.2 million in the year leading up to March 2024.
Critics, including health sector figures and campaigners, raise concerns that large political donations from NHS suppliers could create a perception of undue influence. This scrutiny is amplified by TPP's extensive public sector contracts, which total £591 million in spending since 2016, commissioned by bodies like the Department of Health and Social Care and NHS England.
The company’s political visibility intensified in 2024 following controversial comments made by Hester about a senior Labour politician. Although he stepped down as a director in September 2025, he remains the sole or principal owner, retaining strategic control of the business. In the competitive UK NHS software market, TPP's SystmOne is part of a duopoly—alongside EMIS Health—that dominates core GP IT systems, covering appointment booking, clinical records, prescribing, and data integration.
Supporters argue that TPP’s private ownership and financial stability allow it to invest in long-term product development and service continuity, offering an advantage over publicly listed rivals driven by quarterly earnings. They contend that this sustained profitability ensures reliable, long-term service delivery for the NHS.
However, the wider debate over NHS technology suppliers persists, driven by concerns about governance, procurement transparency, and value for money. Questions have been raised in recent years regarding whether public sector IT spending should be better coordinated and subject to more competitive procurement to prevent over-reliance on a small number of large, established incumbents. Ultimately, the issue for NHS staff and patients is how supplier commercial success aligns with public expectations for high-performance, secure, and equitable digital care. While robust IT systems are essential for modern healthcare delivery, the scrutiny surrounding TPP’s financial arrangements and political activity underscores the need for clear governance and public confidence in the procurement process.
The TPP dividend debate in 2026 illustrates the complex intersection of health technology, public sector governance, and political funding, which may prompt calls for tighter procurement rules or political donation guidelines as the NHS continues its digital transformation.
