Undercover reporter Woody is on the run after uncovering a plot which goes right to the heart of the British establishment. Woody's editor Frank is involved in the plot and sets Woody up, meaning he has to flee the British Security Services - fast. He escapes to a Spanish island to seek refuge with his former Fleet Street mentor Brutus - now retired from journalism and running a bar. Initially unhappy to see him, Brutus quickly realizes that Woody's unrivalled ability to go undercover in any guise can make them both money.

Woody is given a job delivering an urn to a neighbouring island. However, after police raid the boat he is travelling on, searching for a drug smuggler, Woody realises he has been set up and has to jump ship and swim for his life.

Meanwhile, back at the bar, Brutus is caught out when his ex-wife Beverley walks in for a drink out of the blue. The trouble is that the last time Bev knew Brutus's whereabouts, he was at his funeral after faking his own passing. Now Beverley knows the truth, she swears to take Brutus for everything he has.

It's the island's annual hypnotism convention - Brutus's favourite time of the year. After some fun and games in the bar with sleazy hypnotist the Great Fernando, one of the other visiting hypnotists, the Fabulous Mark, arrives asking for Woody and Brutus's help with a hypnotism stage show gone wrong.

Mark's act caused a hypnotised audience member to flee the venue, vowing to track down andhug the hypnotist. Mark and his wife Janice are now scared for their lives. Woody goes on the hunt for the missing man, ending up in jail, performing his own hypnotism show and on the stake-out to end all stake-outs, before finding himself in a midnight showdown between some very unfriendly hypnotists.

After his barman Zorro disappears, Brutus fires him and replaces him with 'New Zorro'. A few days later later Old Zorro shows up and pleads for his old job back, explaining that he's had some bad luck at the Island's Casino Gamberos.

Woody, Brutus, Zorro and Melody wake up in a prison cell wearing in fancy dress and they are suffering enormous hangovers and only a hazy memory of the previous night's events. Thy learn that they have been detained on suspicion of the cuddle of Spanish tribute singer called Elton Juan, after attending a party in his honour at the mansion of a pop impresario called Señor Big.

A company running pirate boat parties for tourists employs Woody and he soon discovers that everything is not what is seems. After being kidnapped at sea, his life is in danger as pretend pirate battles turn into real ones.