The building work creates havoc - and a fire. Shannon decides that she is a prefect, Danny Hartson makes an enemy of Mr. Hankin, and Spencer's dad gets sent to jail for two years.
Ozzie hatches a plan to get the school keys, using self-elected prefect Shannon who in turn delegates the task to Kathy and Martin. Mr. Hankin takes a dislike to Danny Hartson.
Martin, Maddie and Shona explore the basement. Ozzie steals the building plans and when the builders start demolishing the wrong walls, they strike a water pipe, causing a flood.
Tom asks Leah out, Mr. Hankin gives a lecture against smoking, and a meeting about a black refugee sparks off a racist conflict against Nathan and Briony.
Arnie and Wayne use a ruse to get Claire and Vikki out on a date, Ozzie continues his campaign against Mr. Hankin and Mrs. Holmes is seen with her "toy boy".
Mr. Hankin becomes increasingly certain that Danny Hartson is behind a hate campaign against him, and Mrs. Holmes reveals that the mystery man is her son, Michael.
Lisa and Shona's mother returns - but it's not a happy reunion, just a flying visit with the new boyfriend. What are Darren's parents hiding in the loft?
Danny's initialled footprint is found in the fresh concrete, Darren's parents act suspiciously and the staff have a sneaky play at Darren's game console.
Shannon arrives at Lisa's party and says that Danny Hartson dumped her, Miss Fraser makes a new friend, and Darren encounters a strange girl in the middle of the night.
Maddie sends a fake email to Kathy, Mr. Abbott gets a surprise birthday treat, and Tom has sex with Leah, but afterwards Leah tells Shannon she didn't want it.
Shannon comes clean about her imaginary affair with Danny. Refugee girl Amelia is smuggled into school to alleviate her boredom, but in the evening, the police come knocking at the door.
Shannon tells Tom that he raped Leah, Tracy and Lisa both have their sights set on the talent competition, and when hidden refugee Amelia decides to do a midnight flit, Darren goes with her.
Matt has worries about cancer, Max gets publicity for his protest against company logos on sports strips, and Lisa and Tracy's dispute over Tom flares up into a fight.
Shona behaves badly, Kathy discovers that Martin has Asperger's Syndrome, Amy and Anika find where Darren and Amelia have been hiding, and Mr. Hankin tenders his resignation.
Amelia is abducted, Kathy and Martin find evidence of foul play on the part of Mr. Forbes, and things look bad for Danny, Ozzie and Mr. Hankin, trapped in the old boiler room.
Mr. Forbes and Ozzie are arrested, Lisa and Tracy are reconciled, Kelly makes her point, and Wayne's band perform at the talent show, but Ray pays the price for stopping the racist thugs.