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.

Ken Masters is interested in taking over the Mermaid Yard. He employs Leo Howard at the local pertol station and is eager to employ Jan. Meanwhile, Jan and Tom argue incessantly about how he should spend his redundancy money. Polly Urquhart's daughter Abby returns from finishing school but she has not turned out how the Urquhart's expected. Avril tries to prevent Tom from making a foolish investment. In order to raise more capital, Tom asks Avril to find a buyer for the Flying Fish.

Tom confesses to his family that he has invested in the Mermaid Boat Yard and his family is livid about the sale of the Flying Fish. Abby finds settling into the Tarrant social scene rather a challenge. Tom begins work at the Boat Yard where Avril remains coy about the buyer of his boat. Jan’s mother, Kate, encourages her to accept Ken’s offer of work. A distressed Abby takes some drastic action.

Avril and Jack continue to disagree over the future of the Yard and Tom's role in the decision making. Jan offers Ken some business advice over dinner, much to Tom's annoyance. Leo takes a shine to Avril but Abby feels left out in the cold. Kate rescues Jack from a ditch and they have a heart to heart about business and family matters. Lyn and Tom sail the Flying Fish for one last time.

Over dinner with Tom, Avril confesses to buying the Flying Fish. Polly encounters Charles at a gallery opening but does not get the reception she desires. She later admits to Jan that Gerald is not Abby's father. Ken continues to cause friction between Tom and Jan. Charles expresses an interest in purchasing the Mermaid Yard and saving it from financial ruin. When he pays Avril a visit, the true nature of their past relationship emerges. Tom comforts Avril following her unexpected encounter with Charles.