Teased by his peers because of his love of dancing, the little lad found himself alone during school play time.

But his experiences gave birth to a flourishing business which has been helping hundreds of children and has now earned James the Diana anti-bullying award, in memory of Diana, Princess of Wales.

The schoolboy, from Halifax, was just seven when he came up with an idea for signs to be put around schools urging pupils to "look for loneliness", encouraging them to reach out to those who are feeling singled out and afraid.

But it was to be several years before the plan secured the backing of entrepreneur James Caan when the youngster appeared on the television show, Junior Dragons' Den.

By the time Look For Loneliness came to the attention of the television "dragons" James's initial idea had blossomed into a package which could be sold into primary schools, including stickers and story books to teach children about loneliness and bullying.

The exceptional schoolboy had already written four books which explain how it feels to be lonely and left out, but he had plans and the titles already mapped out for 16 – which are now all illustrated and part of the package.

His mother Vanessa still has the scrap of paper on which her son, who is now 12 years old, first sketched out his ideas which were later to become his business.

The 36-year-old nail technician said: "He had problems making friends at school. People did not understand him. He was left out and they called him names at school – ballet boy – because he danced. He spent so many playtimes on his own."

But it during one such break that the youngster struck upon the idea for the signs to urge other children to look out for pupils who may be feeling alone.

"He wanted it to work like advertising," said Mrs Buckley. "He said when you pass signs on the way to school in the morning you always remember them. He wanted it to work like that – a constant reminder around school. I thought his idea was fantastic. I discussed it with a friend and thought it could work anywhere – in the workplace, in an old people's home. There is loneliness everywhere."

James's publications now form a comprehensive reading pack to support primary schools discuss Look for Loneliness in lessons.

The package contains playground signs, a supporting song CD, stickers and a school award trophy which help children to understand how it feels to be lonely and left out and also how it feels to be a bully.

James had been singled out because of his love of dancing but it was the same passion which helped him to stay strong through challenging times.

"He was doing something that other boys did not do," said Mrs Buckley. "He tried to play football and it was not him. It all turned in his favour in the end. He was in a musical and a lot of the class went to see him and realised they don't all prance around in tutus. Things started to turn around a lot.

"I'm proud of him. He is mature for his age. He takes everything in his stride. I know he had a hard couple of years but he rose above it.

"That's James. He will always turn something into a positive. Nothing really seems to faze him."

She said her son was delighted to be honoured with a Diana award, which he is due to be presented with today by the vice Lord Lieutenant at Halifax Town Hall.

The awards recognise young people who have made an outstanding and selfless contribution to their communities, and demonstrated the qualities associated with Diana Princess of Wales – compassion and a commitment to improving the lives of others.

James Caan said: "A huge congratulations to James. I have always believed that if you can help one child you have helped a nation.

"I am really proud of the continuous support and passion for the work James is doing."

James was nominated for the accolade by the Strickland Cook Theatre School, which he has attended since he was two years old.

School principal Zoë Cook said: "We at Strickland Cook Theatre School are very proud of our Diana Award holder. The value to our young people is immense."