Five years have passed and Alan is back on local radio following a nervous breakdown and getting the push from the BBC. Living in a caravan with Ukrainian girlfriend Sonja while his dream house is being built, he has released a (poorly-selling) autobiography, 'Bouncing Back.' A chance meeting at the garage where Michael now works with his old headmaster leads to an invitation to address the sixth form - a predictable disaster. Meeting former schoolmate Phil, now a teacher, revives a bitter memory of Alan being caned for something Phil had done, and Alan starts a row ...
With hotel porter turned petrol pump assistant Michael staying at his house - since somebody stole his front door - Alan is asked to host a sales conference for a firm making coal-effect fires and is visited by their South African representative. Inevitably Alan attempts a South African accent which does not impress but he gets the job anyway. Unfortunately, on the way there he pierces his foot on a spiked fence which severely hampers the quality of his conference speech.
Through his new friend Dan Moody, who owns Kitchen Planet, Alan is invited to make a presentation at the Colmans Mustard Bravery Awards. His efforts to impress Karen Colman by eating a large spoonful of mustard only increase her opinion of his mental state and she invites Sonja, but not Alan, back to her house. Alan is however taken home by Dan, who enthusiastically shows Alan tapes of him and his wife having sex.
Michael has a new friend, Tex, who likes all things American. Alan is jealous and cancels Michael's invitation to join Alan in watching all the James Bond films. Lynn's new boyfriend, Gordon, warns Alan about his behaviour towards Lynn.
Alan's house is finally ready and he gives the builders each a present - a copy of the poorly-selling 'Bouncing Back.' Sonja is keen to move in with him as her flat is being demolished to make way for an office block, but Alan is wary of commitment and prefers to 'come to an arrangement'. After offending a guest on a religious radio show, he continues to offend other religiously-minded guests at Lynn's baptism in church. Finally, 14,000 copies of 'Bouncing Back' are pulped - probably, as Alan suspects, to make room for books about Cockney criminals.