AN Anzac Day terror attack in Australia plotted by a 14-year-old boy from his Blackburn bedroom would "in all probability" have resulted in a number of deaths if it was not thwarted, a court has heard.

The teenager, 15, from Blackburn, was radicalised on the internet by Islamic State propaganda and was said to be determined that police officers would be beheaded at a parade on April 25.

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In July, the boy - thought to be Britain's youngest terrorist - pleaded guilty to inciting terrorism overseas.

Outlining the case at the start of a two-day sentencing hearing at Manchester Crown Court, prosecutor Paul Greaney QC said: "In short, from the bedroom of his parents' suburban home the defendant plotted an attack upon an Anzac Day Parade in Melbourne.

"He did so with an alleged Australian jihadist named Sevdet Besim, who we suggest used the online name 'Illyas'. Their plot was developed over the internet and the intention was that police officers should be murdered by beheading.

"It is clear that the purpose of this proposed attack was to promote the ideology and agenda of Isis. A striking feature of the case is that, at the time of the offence, the defendant was aged just 14.

"It is clear that he had been radicalised by Isis propaganda accessed by him over the internet and the evidence establishes that the contact with his Australian collaborator was instigated by a well-known Isis recruiter and propagandist named Abu Khaled al-Cambodi, himself an Australian, who has promoted the idea of terrorist attacks in his homeland.

"There is no doubt that there was a determination on the part of the defendant and Sevdet Besim that the plot should be carried through and the contact between the two included frequent references to the production of a martyrdom video by Besim for al-Cambodi which, no doubt, al-Cambodi intended to use for propaganda purposes.

"In the event, fortunately, the authorities here and in Australia intervened and a plot that would in all probability have resulted in a number of deaths was thwarted."

The prosecutor detailed the background of the Muslim defendant and said that in the period leading up to his offending his family circumstances "appear to have been difficult" when his parents were said to have separated.

From the age of 12 he was "undoubtedly a troubled young person" and was excluded from school on a regular basis for regular abusive and disobedient behaviour, Mr Greaney said.

The youngster, who cannot be named for legal reasons, was said to have "strong religious convictions" and was disruptive when he attended a large secular school where most of the pupils were white.

On one occasion he praised Osama bin Laden and stated his own desire to become a jihadist and a martyr, the court heard.

The defendant was later referred to the Government's counter-extremism programme Channel after his mother explained to the school that he spent all night on his computer studying foreign affairs and "seemed to have the weight of the world on his shoulders".

Mr Greaney said: "She stated also that he spent time talking over the internet to persons that he had not met."

It led to him moving schools but his poor behaviour continued and more exclusions followed, the court was told.

While there he threatened a male teacher on "many occasions" and on one date he said he would "cut his throat and watch him bleed to death".

Another male teacher logged a comment from the youngster that he was plotting to kill someone, the prosecutor said.

The voluntary Channel programme closed his case in July 2014 after the school noted no particular features of radicalisation.

Later that year his behaviour at school escalated and in one lesson he was heard talking to other pupils about beheading, the court heard, and pushed his phone into the face of a teacher, which played a video showing dead and bloody bodies on the floor.

The teenager went on to express extremist views on matters related to Islamic State and terrorism.

Mr Greaney said: "He regularly mentioned death and unpleasant methods of torture. He also spoke of his desire to be a suicide bomber, stating that if he had to choose where to detonate his bomb it would be on a plane in order that he could maximise the fatalities."

In one class he was reported to have said to a teacher: "You are on my beheading list," and said the teacher was now on the list above a colleague.

A second referral to Channel took place in November 2014 but the youngster continued to threaten to kill teachers and told one "your time has come" as he referenced terrorism and beheadings.

In one lesson on the death penalty alongside the comment "killing another person is immoral", he had written: "You could not be more wrong."

Mr Greaney said: "In a meeting with officers from the Channel programme he similarly expressed the view that killing could be justified on religious grounds and to a social worker the same day he described the Charlie Hebdo attackers as his heroes."

By early March this year, said Mr Greaney, "a tipping point" had been reached.

He said: "The teaching staff at the school were increasingly concerned for their own personal safety and the evidence of (the defendant's) radicalisation was overwhelming.

"(The defendant) had disengaged from the Channel process and attempts to divert him from a path of extremism had failed."

The teenager told Channel workers that he knew he was going to be killed or go to jail and he blamed the Channel process for radicalising him after previously saying it had prevented him going to the school of his choice.

Mr Greaney said: "He said that he had a new identity on the internet and was in contact with many adults through that means, something that in the event proved to be quite true."

The boy was arrested at his home on the morning of March 25 on suspicion of making threats to kill, and his phone was examined.

The prosecutor said: "The screensaver for the handset of the Samsung Galaxy was the flag of Isis. The handset also contained a video showing the events immediately preceding a beheading by members of Boko Haram along with photographs of other beheadings, including by Jihadi John, to whom (the defendant) had referred in discussions at school.

"Isis propaganda was found on the handset, including three editions of an Isis magazine, one of which contained excerpts from a speech by an Isis spokesman calling for lone wolf attacks in home countries.

"Footage of an anti-Shia lecture by an extremist preacher was also discovered. There were hundreds of photographs showing Isis fighters, prominent individuals associated with Isis, dead Syrians and other Isis calls to arms."

The prosecutor said: "(The boy) had also used the handset to search for news items relating to Isis and associated issues. In addition, he had searched for information about high explosives and associated topics. In other words, the handset revealed the clearest evidence of (his) mindset and of his religious and political views."

Mr Greaney went through evidence of the boy's social media contact with other extremists around the world.

He said: "And so, putting (the defendant's) behaviour at school together with his activities over the internet, a clear picture emerges of a young person who was, by March 2015, thoroughly and dangerously radicalised and committed to Isis and the idea of violent jihad, and who was, moreover, wired into the Isis network."

The teenager apparently first made contact with al-Cambodi, whose real name is Neil Prakash, through internet messaging applications in early January.

Initial discussions took place about travelling to Syria, the routes that might be used and possible support from al-Cambodi, who treated the defendant as "a little brother", the court was told.

Mr Greaney said: "(The defendant) indicated that he was prepared to carry out an attack and had been observing targets around Lancashire and said that he was "preparing to see my lord".

Conversations followed from March with Besim, the alleged Australian end of the plot, in which the defendant showed he knew and was in contact with al-Cambodi.

Besim, using the name Illyas, introduced himself to the defendant on March 16 on an encrypted messaging application with the words: "I'm the brother from Australia."

More than 3,000 messages between the two were exchanged over the course of nine days in which the defendant took on the role of "organiser and adviser", the court was told.

Besim was a close associate of an Australian named Numan Haider, a known extremist, and was in his company in the hours before Haider attacked two police officers with a knife in Victoria and was shot dead.

The prosecutor said it was "absolutely clear" that al-Cambodi was the link between the defendant and then 18-year-old Besim.

He added: "That such a significant Isis figure put the two in touch is of itself indicative of the serious nature of the plot upon which (the defendant) and Besim were to embark."

The defendant asked Besim whether he wanted to become a martyr and Besim confirmed he did, the court heard.

Besim was referred to by the defendant as "a lone wolf" and was told he was to carry out the attack on his own and could ask for advice.

Mr Greaney said: "(The defendant) added that Besim would need to make a video - by implication a martyrdom video - to send to al-Cambodi, the man to whom we have made much reference, for onward transmission to Al Hayat, the Isis media outlet.

"He told Besim that he would research targets in Melbourne and task him once a suitable target had been identified. Besim volunteered that he would "love to take out some cops".

"And so, within hours of the men first making contact, not only had the plotters determined that the attack was to take place in Australia, but also the idea of an attack upon police officers was taking hold."

In the early hours of March 18, Besim suggested an attack on Anzac Day, the court heard.

The defendant messaged, "Sounds good", and Besim replied: "Make sure the dogs remember this as well as there fallen 'heroes'."

Mr Greaney said: "Shortly after this exchange about Anzac Day, (the defendant) suggested that Besim should "break into someone's house and get your first taste of beheading".

"Besim responded to indicate that this seemed rather risky but (the defendant) reassured him that this would only be so if he carried out the killing in the hours before the operation and suggested that the victim should be a "proper lonely person".

"In the result, this aspect of the planning seems to have drifted away, but it is a frightening indication of the lengths to which (the defendant) was prepared to go, suggesting the beheading of a vulnerable person as practice for the operation."

In the early hours of March 19 the defendant said to Besim that he was going to present him three options - a gun attack on the police, a car attack on the police or a knife attack on the police.

Mr Greaney said: "Besim expressed a preference for a combination of a car and knife attack and (the defendant) advised him to buy a machete and sharpen it, run over a police officer and then decapitate him.

"He told Besim to ensure his own death in the attack so that he would achieve Shahada, or martyrdom."

The defendant also referred to himself as "a planner" and suggested he was involved in multiple operations, the court was told.

On March 21 Besim said again that Anzac Day was a good day for the attack because "this will mean they will remember this on that day every year after" and the defendant replied: "Anzac Day it is."

Messages discussing the weapons to be used followed and in the early hours of March 23 Besim said he was travelling with a machete, knife, Taser and a Shahada martyrdom flag in his car.

The prosecutor said: "He raised the prospect that he would go on a 'rampage' there and then. The use of a machete was again discussed and (the defendant) said, 'Bro it gotta be heavy n sharp yh. Like sword, Quick beheading, then move to next target'.

"And so, (the defendant) anticipated more than one murder, if possible."

When Besim showed him a photograph of a knife, the defendant replied: "Handle is perfect for tearing through throat."

The Australian authorities went on to confirm the knife was found in Besim's possession when he was arrested on April 18, said the prosecutor.

On March 24 Besim messaged the defendant: "So far the plan is to run a cop over on the anzac parade & then continue to kill a cop then take ghanimah and run to shahadah?"

The defendant responded: "ill give orders soon but its looking along that line."

The following day the defendant told Besim to make sure he was shot during the attack.

Besim replied: "I feel lik a young kid with a ticket to disney world cant wait ahahah. Yeh I wanna make sure I get shot to. Not b4 I take out at least 1."

Hours later the defendant was under arrest and his phone was in the possession of the police, said Mr Greaney.