Tom Howard, along with son Leo and daughter Lyn, celebrate their success in the prestigious Commadore Cup but when Tom reveals he has been made redundant from Southern Aviation, none of his family is too happy. Jack Rolf is concerned that his business, The Mermaid Boat Yard, is about to go bankrupt. Tom discusses his problems with Avril Rolf and considers investing his redundancy in the Boat Yard.

The legal battle between Jack and Skellet over the Mermaid Yard hots up. Tom adapts his boat designs to appease Jack while Charles and Ken's plans for the marina development forge ahead. Charles seduces Lyn and learns of Tom and Avril's affair. Jan receives a business offer from Claude Dupont and a personal offer from Ken. Kate invests in a racehorse. Polly interferes in her absent daughter's life.