The Scottish founder of one of the UK's leading independent television production companies, responsible for hits including Supernanny, Footballers' Wives, Waterloo Road and Bad Girls, is being replaced, it was announced yesterday.

Eileen Gallagher, the Hamilton-born television producer, will step down on January 1 but retain her place on the board of Shed Media, which she helped set up a decade ago. She will be replaced by Nick Southgate, the company's chief operating officer, who has played a key role in the company's expansion in America.

Ms Gallagher, who has been chief executive of Shed since it floated on the stock exchange in March 2005, will become chief executive of Shed Productions, one of the company's subsidiaries and take a more hands-on role in scripting dramas.

She said: "This is terrific news for Shed Media. Nick is an extremely talented and creative executive who is the best person to lead the group and take it to even greater heights. I am delighted that we have found such a great successor within the ranks of our executive team..

"I've always promised myself I'd get back into drama and I very much look forward to helping the team in Shed Productions build our scripted business in London, Glasgow and Los Angeles."

Shed Media, comprising Shed Productions, Ricochet, Twenty Twenty, Wall to Wall and Outright Distribution, has produced over 2700 hours of programming and sold its formats and content in over 200 territories worldwide.

The group has expanded in America and is in production on seven series for seven different broadcasters including the fifth season of Supernanny for ABC, Who Do You Think You Are? for NBC, The Real Housewives of New York City for Bravo and It's Me or the Dog for Animal Planet.