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The film is narrated by Frankie (Dyer), a young man living in South East London during the Thatcher Era of the 1980s, with little hope of ever making anything of himself, yet he dreams of "being somebody" and escaping the dull, grey urban landscape. After murdering his mother's abusive boyfriend, he becomes a fugitive, and through family connections escapes to Spain's Costa Del Sol. His job there is to deliver a bag containing drugs and cash to "Playboy Charlie" (Hassan), an Asian British ex-pat and criminal-on-the-run, a suave and dapper man who is very successful in Spain and runs his own nightclub and drugs business and lives a life of excess and luxury. Impressed by Frankie's honesty in not opening the bag, Charlie takes a liking to Frankie, introduces him to his business associates, including the psychotic Sammy (Bell), and invites him to remain in Spain and work as his driver.

Frankie discovers that they are in fact the "Peckham Four", wanted for armed robbery back in Britain. However, Frankie decides he prefers an exciting life of sun, drugs, women, money, fine cars and clothes, and a reputation, as opposed to being a nobody back in London. Frankie soon accepts and becomes involved in the business of smuggling cannabis across the Strait of Gibraltar from Morocco, in which children are used although the children are sometimes shot dead by the Spanish Navy patrolmen.

The film then follows the rise-and-fall pattern common to many gangster films, showing first the criminals living the high life as their cannabis trade is booming, and then the downfall as greed and jealousy (not helped by the obvious attraction between Frankie and Sammy's beautiful trophy wife Carly) introduce rivalries between them, and eventually split them up. Charlie and Frankie decide to go into business alone, importing cocaine instead of cannabis through drop-offs from Colombian aeroplanes, but this is the cause of the final catastrophe. Not only do they both become increasingly addicted to the drug itself, but also the local mayor, who had been happy to ignore the cannabis trade but had warned them not to import cocaine, discovers what they are doing and uses the weight of the law to shut them down and close their businesses. An assassination attempt on the mayor's life ends in failure, and the gruesome death of one of the gang.

A few years later (6 months before the 'real-time' narration), Frankie and Charlie are homeless thugs in need of a wash and reduced to stealing in order to survive. While organising a disappointing reunion party at Charlie's old bar (which Frankie's former heroin addict friend Sonny is now running), Frankie meets the scheming Carly again and decides to make one last deal. He invites Sammy in on a pick-up, but while both intend to betray the other, Carly has given Sammy a pistol with an empty clip. Sammy tries to shoot Frankie, who in turn beats him with a rock. The fight ends quickly as Spanish Navy patrolmen shoot Sammy to death, and Frankie escapes through a sewage outlet. Frankie emerges from the sewer to meet Carly, who had masterminded the whole thing, finally getting his happy ending. But at the last minute, he realises he can't trust Carly when he finds another pistol in her handbag amongst their money, so he knocks her out and drives off into the sunset on his own.

The ending reveals that Sonny cleaned up his act and continued to run Charlie's old bar, which he did so successfully, whilst Charlie was reduced to working on the door. The theatrical ending also reveals that "Carly went back to her parent's house in Penge", "Sammy went to Hell" and "Frankie went to Hollywood" - an obvious pun on the name of popular 1980s band Frankie Goes to Hollywood.

The DVD extra features contain an alternate ending which is more in line with the tragic ending featured in most crime/gangster films. In the alternate ending, Frankie meets Carly at the border, where she promptly tells the border guard where to find drugs in Frankie's car.