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Harding announces his plans for the factory and whether he and Alice intend to stay in Skelthwaite permanently, while Sally and Billy make an important decision about their future. At the village summer fete, David and Anna go public about their relationship and are stunned by a surprise from Luke.
Ozias is determined to ruin the factory, despite suffering a personal crisis, and a former cabaret star has her work cut out trying to make up for lost time with the daughter she sacrificed for a glittering career. Beth goes into labour during a day out with the local widows, while Nathan and Joe fight over Alice
Nathan and Joe discover that Alice has been two-timing them. Harding accuses Raggy of biting him. Alan wins a competition. Billy and Sally's marriage is put under pressure when a patient's wife accuses Sally of having an affair with her husband
Beth is fed up with Tom being too overprotective. Anna is torn between saving the factory and remaining loyal to her friends. Luke returns home from hospital but his attitude towards David has changed. Feeling neglected by Nathan, Alice flirts with Joe. Charlie tries to send his daughter away from town to stop her finding out that he has Parkinson's disease
Anna is unsure whether she should tell Luke the truth about his chances of recovery after his near-fatal rugby accident, and Ozias Harding's persistent bullying forces Billy to resign from the factory, leading Nathan to take revenge against the businessman by asking out his daughter Alice.
Ozias Harding makes his presence felt in Skelthwaite by ruthlessly firing Alan from the factory, while Luke is rushed to hospital after a serious accident on the rugby field, and Beth has a chance to test her maternal instincts when she is asked to lead the children's Moon Catching Expedition.
Anna and Tom meet with Ozias Harding, a potential investor at the factory, but David is concerned that the stern disciplinarian could be bad news for the business. Meanwhile, Billy has some upsetting news for Sally, and Beth finds herself in danger when she nurses an elderly lady with a 40-year secret.
David and Anna have a secret romance, Beth starts to feel paranoid about the amount of time Tom is spending at the factory, and Nathan and Kate both have important decisions to make about their futures.