Firm has begun work on pre-school animation, Cloudbabies.
Children's development, production and rights management start-up, Hoho Entertainment has stated that pre-production has begun on its first animated pre-school project.
Cloudbabies has been acquired by Cbeebies and is due to air in 2012.
The show focuses on four childlike characters - Baba Pink, Baba Blue, Baba Yellow and Baba Green - whose job it is to look after the sky and their Sky Friends: Sun, Moon, Rainbow, Fuffa Cloud and Little Star.
The series was created by Bridget Appleby, and will be animated in CGI by Manchester-based Studio Liddell.
"We're only eight months old and Cloudbabies is very dear to our hearts as it's the first project out of the Hoho stable," said the firm's joint managing directors, Oliver Ellis and Helen Howells. "There's already a lot of excitement building around the series, and we have managed to keep all the production in the UK, which is quite exceptional nowadays.
"We are looking forward to taking a pilot episode to Mipcom in order to secure international partners."