A software company with deep political ties has made headlines, sparking controversy and raising questions about the intersection of business, politics, and public sector contracts.
The Story of Frank Hester and His £50m Dividend
Frank Hester, a Tory donor and major contractor to the NHS, has seen his software firm, TPP Group, pay out a substantial £50m dividend after a surge in sales and profits. But here's where it gets controversial: Hester's company, which specializes in healthcare technology, has a complex relationship with the NHS and the political landscape.
TPP Group, founded by Hester in 1997 as The Phoenix Partnership, provides its SystmOne software to over 7,800 NHS organizations, including GP practices and mental health trusts. With a database storing 61 million electronic health records, TPP has also expanded globally, reaching China, the Middle East, and the Caribbean.
In the year ending March 2025, TPP Group's turnover reached £97.1m, a 13% increase from the previous year. Pre-tax profits soared to £47.4m, a significant jump from £17.4m, as per the latest annual accounts filed.
The dividend payout of £50m in the most recent year is a substantial increase from £7m in 2024 and £10m in 2023. Despite stepping down as a director in September, Hester remains the majority owner, with at least 75% of the shares. He also received a salary of £520,000 in the year to March 2025, unchanged from the previous year.
And this is the part most people miss: the company's political donations. The filings, first reported by the Times, reveal that TPP donated a whopping £10.2m to the Conservative party in the year to March 2024. Hester and his company have collectively donated over £20m to the Tories since the start of 2023, according to the Electoral Commission's register.
Hester's political contributions and his company's success have not been without controversy. In March 2024, he found himself at the center of a political storm after The Guardian revealed his offensive remarks about Diane Abbott, Britain's first black female MP. Hester's comments, made in 2019, included statements like "looking at Diane Abbott makes you want to hate all black women" and that she "should be shot." Abbott described the remarks as "frightening."
In response, TPP issued a statement, claiming that Hester's criticism of Abbott had nothing to do with her gender or skin color. The statement emphasized Hester's abhorrence of racism, citing his own experience as the child of Irish immigrants in the 1970s.
As a key supplier to the NHS, TPP has received £591m from public contracts since 2016, according to Tussell's invoicing data. This includes significant sums from the Department of Health and Social Care, NHS England, and various NHS trusts across the country.
Hester's journey from a computer programmer in the financial sector to a successful entrepreneur and key NHS contractor has been remarkable. According to the 2024 Sunday Times rich list, his personal fortune is estimated at £415m, and he was awarded an OBE for services to healthcare in 2015.
The TPP website highlights Hester's motivation to remove administrative burdens from his former wife, a family doctor, so she could focus on patient care. By his own account, the company was valued at £1bn in 2019, prompting him to celebrate with a "unicorn party" at his mansion near Leeds, complete with horned horses.
The story of Frank Hester and his software firm raises important questions about the influence of political donations, the ethics of public sector contracts, and the impact of private companies on healthcare. It invites us to consider the complex relationships between business, politics, and the public good.
What are your thoughts on this story? Do you think there should be stricter regulations on political donations from businesses, especially those with significant public sector contracts? Share your opinions in the comments below!
