A 22-year-old man from Anagh Coar has been convicted of possessing cocaine with intent to supply.
Connor Edward McKellor, of Close Fletcher, admitted hiding the drug in his anus when he saw police on Loch Promenade.
He will be sentenced on July 30 after a probation report has been completed.
Prosecutor Roger Kane told the court how police saw McKellor leaving public toilets opposite the Bordello nightclub at 3am on June 4.
He was said to be sniffing and was approached by police due to a previous dealing they had with him.
As officers approached he was seen putting his hand in his tracksuit pocket then behind his back.
He was arrested and taken to police headquarters where it was ascertained that he had insterted a wrap of cocaine into his anus when he saw police.
After being taken to Accident and Emergency, McKellor produced a small wrap from his anus which was later said to weigh 0.2 grams and be £20 worth of cocaine.
When interviewed he told police a man in Bordellos had given him £100 to buy cocaine for him.
McKellor said that he had then arranged for someone to meet him in the toilets opposite Bordellos and bring the drug.
He said that after buying the coke he had snorted some himself in the toilet before rebagging the rest to take to the man in Bordellos.
McKellor entered a basis of plea saying that he had no benefitted financially from the offence but had stupidly done a favour for an acquaintance.
Defence advocate Ian Kermode said: ’The evidence is based on what Mr McKellor said in interview. Had he not said what he did he would have been charged very differently.’
The court heard that McKellor was cautioned in May for possession of ketamin.
High Bailiff Jayne Hughes ordered that the probation report consider all options, including custody.
Bail was granted with permission given to McKellor to leave the island for a pre-planned holiday.