Gerald is on to Sir Edward's plot to ruin Ken despite his feigned interest in the floatation of Leisure Cruise on the stock market. Tom is left un-impressed when Ken's cheque, for his pending commission at the boat yard, bounces.

The Mermaid's latest boat, The Sprit of Tarrant is a success as are Jan's latest creations. To make up for neglecting her, Charles surprises Avril with a trip to New York, as way of an apology, but tragedy lies ahead for the pair.