The healthcare technology company founded by prominent Conservative donor Frank Hester has paid out a £50 million dividend following a sharp rise in sales and profits, new company filings reveal.
Financial Surge for NHS Contractor
TPP Group, which provides the widely-used SystmOne software to the National Health Service, saw its turnover increase to £97.1 million in the year to 31 March 2025. This represents a 13% rise on the previous year.
More strikingly, the Leeds-based firm's pre-tax profits leapt to £47.4 million, up dramatically from £17.4 million the year before. This financial performance enabled the substantial £50 million dividend payout, a significant increase from the £7 million paid in 2024.
The company, originally named The Phoenix Partnership, was founded by Hester in 1997. It states that its software is now used by 7,800 NHS organisations, including over 2,600 GP practices and a third of acute mental health trusts, managing 61 million electronic health records.
Political Donations and Controversy
The latest accounts, first reported by the Times, also show that TPP donated £10.2 million to the Conservative Party in the year to March 2024. According to the Electoral Commission, Hester and his company have donated more than £20 million to the Tories since the start of 2023.
Frank Hester, 59, stepped down as a director of TPP in September but remains the majority owner with 75% or more of the shares. He received a salary of £520,000 from the company in the last financial year.
Hester was at the centre of a political storm in March 2024 after the Guardian reported remarks he made in 2019 about Diane Abbott, Britain's first black female MP. He later stated that his criticism "had nothing to do with her gender nor colour of skin" and that he abhorred racism.
Substantial Public Sector Revenue
As a key supplier to the NHS, TPP's financial success is closely tied to public contracts. Data from Tussell shows the firm has received £591 million from public contracts since 2016.
This includes £281.7 million from the Department of Health and Social Care and £56.1 million from NHS England, with the remainder coming from NHS trusts across the country.
Running the successful NHS contractor has helped Hester amass a personal fortune estimated at £415 million, according to the 2024 Sunday Times Rich List. He was awarded an OBE for services to healthcare in 2015.
The company, which has also expanded into markets including China and the Middle East, was valued at an estimated £1 billion in 2019.
