Eileen Gallagher, the group chief executive of Waterloo Road producer Shed Media, is to step down at the end of the year after 10 years at the helm.

Gallagher will remain on the board of the company and instead take the role of chief executive of Shed Media subsidiary Shed Productions.

Nick Southgate, Shed Media's chief operating officer, will assume the group chief executive role from January 1.

"After 10 years as chief executive of Shed, Eileen has decided to return to her creative roots," said Katherine Innes Ker, the chairman of Shed Media.

"In the three years since Shed floated on AIM, Eileen has led a complete transformation of the company, delivering on the strategy of diversifying and strengthening the business."

Since co-founding Shed Productions a decade ago, Gallagher has spearheaded the expansion of the group into Shed Media, acquiring and integrating other companies including Ricochet, Twenty Twenty and Wall to Wall. The company has also moved into the US market.

"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," said Gallagher.

Southgate said that the company was on track to deliver full-year profits in line with market expectations.

In September, Shed Media announced a 52% rise in pre-tax profits to £3.8m for the first six months of 2008, fuelled by a strong performance in the US.

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