Matt has taken up palmistry as an aid to seduction; but how can he seduce women without leaving the flat? Mandy has built up debts of over 9000 pounds using her credit cards, and now a female debt collector is on her trail. Mandy's money problems are solved by an interest-free loan from her millionaire boss, Archie. Meanwhile, Martin hears news of Clare.

Martin bumps into Clare in the video shop and discovers that she has a baby, Rosie, and that he's the father. Martin pays a surprise visit to Clare's home, but finds her with a man. After he rants about how wrong it is for anyone to come between a father and his daughter, he discovers that the poor man has only come round to fix the washing machine. Clare tells Martin that she doesn't want him involved in bringing up his daughter, so Martin sees a lawyer to find out if he has any legal rights where his daughter is concerned. Mandy is still going out with Archie. When he calls round to pick Mandy up for a date, Martin tells him that Mandy is only interested in him because of his money. Next day, Archie tells Mandy that he's in love with her and wants to marry her. Finally, Clare relents and tells Martin that she wants him to be Rosie's dad after all — and lets him look after the baby while she goes out on a dinner date.

Matt declares his ambition to join the Marines in memory of his brother, Danny, who died in a road accident days before he was due to qualify as a Marine. Mandy and Archie go to bed, but Archie turns out to be impotent. Matt builds a jungle assault course in the flat; he also tries to have sex with a vacuum cleaner and gets stuck. Martin calls Clare and she comes around to help; then Mandy arrives home with Archie and a group of friends from his days in the Marines. Archie reveals that HE had a brother named Danny who died just before he was due to become a Marine. Later, Archie finally manages to overcomes his impotence.

Mandy has to cook dinner for Archie's mother and sister and she's getting worried about it. Martin drives Matt crazy going on and on about baby Rosie. Clare tells Martin that she can't see him as a proper father because he's not much better than a vegetable. Mandy wants to cook some crabs, but they're still alive and she can't manage to kill them. It looks as if the dinner party will be a total disaster. She gets drunk and passes out, leaving Martin to prepare the meal using some of his mother's frozen meals. Archie's sister Lulu gets the idea that Rosie is Martin and Mandy's baby. Mandy unwwittingly reveals details of her past to Archie's mother, who threatens to tell Archie. Clare tells Martin that she's planning to emigrate to Australia. Archie tells Mandy that he doesn't mind about her past.

Clare tells Martin that she's going to Australia with her new boyfriend, Shane. Martin decides to consult a lawyer to see if he can prevent Rosie being taken out of the country.

Martin gets a postcard from Clare, telling him that she's married Shane in Australia.