Fenner gives Reg the keys to his flat so that he can paint the walls. Paddy holds her birthday party there. Fenner returns unexpectedly and so does his battle-axe of a mother-in-law.
Fenner makes a time and motion study of the girls, but loses money on the deal. His potential buyer for the dresses is a gourmand, so he tries to get Reg and the girls to provide a slap-up meal in his office.
The factory's girls are attracted to a young doctor. This causes them to fall behind with their work. Paddy tries to rectify the situation by bringing in outside help, but a factory inspector turns up.
Fenner tries to persuade his bank manager that Fenner's Fashions is a good investment. He cannot sell a batch of baby doll nighties, but the girls sew fringes on them and they sell as flapper dresses.