EARLIER: A LAUNCESTON man told police he wanted to steal money buried in a drug dealer's backyard, a court has heard.

Joshua Raymond Smith, 21, pleaded guilty in the Launceston Supreme Court today to having been found prepared for the commission of a crime.

Crown prosecutor Virginia Jones told the court that police saw Smith in Balfour Street, Launceston, about 3.20am on July 16 this year.

Officers searched Smith and seized a knife, pair of gloves, mobile phone and balaclava from his possession.

Ms Jones said the mobile phone contained text messages about the sale of power tools and drugs.

Smith told police that he had been on his way to rob a drug dealer of his money, which was buried in the dealer's backyard.

The prosecutor said Smith told police he had the knife for his protection, and the balaclava so he would not be recognised.

Defence counsel Adrian Hall said if his client had in fact committed the crime he planned to, in all likelihood his matter would have been dealt with in the Launceston Magistrates Court.

Mr Hall said Smith had been co-operative with police and his brush with the law had discouraged him from using the drug ice and associating from people who did.

He said Smith was a qualified tradesman who wanted to move to Queensland for work.

Justice Robert Pearce ordered that Smith be assessed for community service and adjourned sentencing to 2.15pm today.