Morgan Huxley died in September.

Morgan Huxley died in September. Photo: Supplied

A man accused of stabbing small-business owner Morgan Huxley to death in his Neutral Bay unit has made some comments that may constitute an admission, a Sydney court has heard.

Daniel Jack Kelsall, 21, pleaded not guilty on Friday to indecently assaulting Mr Huxley and stabbing him up to 28 times in the bedroom of his unit in Watson Street in September last year.

Mr Huxley, 31, had spent the day at a friend’s engagement party and was last seen walking out of the Oaks Hotel on his own after a nightcap about 1.30am.

Homicide detectives say that Mr Kelsall struck up a conversation with Mr Huxley at a set of traffic lights, then followed him home.

Mr Huxley was found barely alive by his Irish flatmate Jean Redmond in the early hours of September 8. 

Mr Kelsall's lawyer, George Breton, told the NSW Supreme Court on Friday that a high-profile silk had been set to represent his client at trial but that "couldn't continue".

Mr Kelsall was now applying for legal aid representation for the four-week long trial set to begin in March next year.

The prosecution told the court that the case against Mr Kelsall was a "circumstantial case" and that there were "some things said by the accused, which could be said to amount to admissions".

Mr Breton indicated that the alleged admissions would be disputed. 

Mr Kelsall, a kitchen hand, appeared via video link from Parklea Correctional Centre with a shaved head and wearing glasses. 

He calmly answered "not guilty, your honour" as the charges of indecent assault, murder and stealing a mobile phone were read out. 

Mr Kelsall has previously entered pleas of not guilty before Central Local Court in relation to two counts of possessing child pornography. Those matters will be dealt with by a lower court.