An investigation is underway into the financial dealings of a Hakin businessman after he appeared in court to admit possessing cocaine with intent to supply.

Graham Alfred Davies, aged 47, had been due to stand trial at Swansea crown court on Wednesday accused of other offences too.

But after negotiations between the defence and prosecution Davies, of Haven Drive, admitted possessing an unspecified amount of cocaine on October 28 last year.

Catherine Richards, prosecuting, said she did not accept Davies' claim that at the time he had a "heavy" cocaine habit and would have dealt in the drug only to finance his own intake.

"The prosecution case is that he was selling on a commercial basis," she added.

She said the prosecution did accept that Davies had been a businessman and had had a legitimate income "but that did not account for all his income."

The court heard that police had seized £13,000 from Davies and the prosecution wanted to know what had happened to the money raised from the sale of a boat.

A Proceeds of Crime Act investigation is now being carried out by Dyfed Powys Police alongside an inquiry by the Regional Assets Recovery team.

Davies' barrister, Dyfed Thomas, said his client accepted that "profits had been made" and said the real question outstanding was what the court would view as the true level of commerciality.

Once the investigations had been completed and the court knew of the real level of dealing "there might be room for further movement between the two sides," he added.

Judge Gerald Price said it was clear "we are not talking about some unemployed drug addict trying to cover his costs."

Mr Thomas said Davies was "fully aware of the reality of the sentence."

Judge Price ruled that a further hearing would take place on June 1, by which time both sides would have more information.

Davies was granted bail until then.