Sir Edward Frere arrives and expresses an interest in his son's business affairs. Jan finds herself in demand but when she is unable to keep up with requests for her clothes she decides to employ a new designer. Meanwhile, Kate settles into Jan's home. Following the catamaran incident, the Mermaid Yard struggles to find new contracts and negative publicity does little to alleviate their troubles. Charles continues with his marine development plans but becomes suspicious of John Ingram. Charles takes a fancy to a picture up for auction but is frustrasted to learn he is not the only interested party.