A week after hairdresser Karen caught her boyfriend Mike kissing another woman the pair bump into each other at karaoke night in a local pub. Earlier, there is trouble at the hair salon with a regular customer.

Mike and Karen try to patch things up. Bigsy goes AWOL but when Mike finds him it just throws up another dilemma. The police visit Marion about the break-in next door. Geraldine is under suspicion over the missing contents of the handbag.

Mike receives some unexpected visitors at the arcade. It's not a good day for Geraldine as not only is it Mrs Bookham's funeral but Lisa Marie storms out of the salon after a blazing row.

Mike and Karen decide to move in together and go flat-hunting. Geraldine admits to Karen that she's feeling the strain of the salon's financial difficulties and things only get worse when the police pay her a visit.

Karen and Geraldine wonder who might have told the police about Mrs Bookham's missing money. Mike and his boss interview for a new member of staff at the arcade. Geraldine meets a mystery investor.

Tony and Hayley make a visit to talk through their plans for the salon's renovation. At The Good Ship's charity night, Mike is surprised when an admirer makes him an offer which could change his and Karen's lives forever.