Freezer store chain Heron Frozen Foods is to move into a new 270,000 sq ft distribution centre and head office this summer.

The new site in Melton, East Yorkshire, will help the company, which is currently based in Hull, to expand and reduce costs.

Turnover in the year ending December 2008 was up 17% to £123.8m, according to new accounts posted at Companies House.

Pre-tax profits were down by 14% to £5.3m, but this was partly caused by an exceptional charge of £2.1m, which was invested into a pension plan on behalf of three directors. The pre-tax profits would have been up 20% if the charge were stripped out.

The company owns 140 stores, mainly in the north of England, and with a pre-tax profit margin of 6% is one of the most profitable companies in The Grocer's league of Top 50 independent retailers.