A pensioner today admitted he gunned down a businessman in a contract killing which has remained a mystery for more than a quarter of a century.

Alan Savage, now 72, from Hastings, was told he would be jailed for life after pleading guilty to the murder of newsagent Geoffrey Small, in 1976 by shooting him four times at close range.

Hitman Savage was arrested in September this year after police received information after a BBC Crimewatch programme.

David Levy, prosecuting, told the Old Bailey: "He had been hired by someone else for £2,000. The weapon was provided for him."

Police are continuing their investigation into the murder of 46-year-old Mr Small. Savage has said he is willing to help them - and possibly give evidence in the event of any further arrest.

The motive for the murder is believed to have had a sexual background.

Mr Levy said Savage was not the man who had wanted Mr Small dead.

He said: "He received £750 in cash. The contract was for £2,000 but he did not receive the balance and he did not pursue it."

Savage had previous convictions for dishonesty and firearms offences dating back to his teenage years.

He is now suffering from bladder cancer, the court heard.

Judge Martin Stephens adjourned sentencing until January 13.

Mr Small's widow, Joyce, and their son and daughter were in court to see Savage admit the murder.

The frail pensioner had to support himself in the dock as he stood to plead guilty.

Married, popular, bespectacled Mr Small was the quintessential suburban shopkeeper.

He had just arrived at his shop in Sutton, Surrey for another routine day's work when Savage opened fire with a semi-automatic pistol. The last bullet was fired into the back of his head.

Savage had broken in earlier and lain in wait for his victim.