Ron spends the night in Suzie's bed. As his taxi is parked outside, the neighbours think he spent the night with Elsie. Ken arranges for a Chief Petty Officer from the Navy to call about a Community Centre talk but it's really for him to talk to Peter. Stan and Eddie go to the races for the day. Hilda sees Tiny Hargreaves with Stan's cart and thinks he's stolen it. She takes it when he's not looking. Hilda and the cart are stopped by a Police Constable who find the cart is full of lead. CPO Henderson tells Peter he'll have to be useful to earn a place on board and that he'll have to pass exams to get in. He tells him that if he gets 'O' Levels in Physics, Maths and English he won't have to sit an extra exam. Ken tells Peter he's going to get his 'O' Levels and join the Navy. Peter agrees. Hilda tells Stan his cart has been impounded by the police.