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.

Abby secretly leaves for Southamptom leaving all in Tarrant mystified. Lyn is perturbed by Phil Norton's agenda and blows her chance of crewing for him. Charles Frere shows an interest in developing the marina. Ken uses his knowledge of who really bought the Flying Fish to drive Tom and Jan further apart.

Tom and Avril's first night together is interrupted by a boating accident. When it emerges that the boat was recently serviced by the Mermaid Yard, there are criminal charges to answer. Leo becomes suspicious of his father's relationship with Avril. Jan is angered when Ken tells her what has been going on. Richard Skellet pursues his claim on the Mermaid Yard and it emerges he has a backer with a vested interest in gaining ownership of the 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.