Early morning at the workshop with a good dose of coffee gave a good result! 
Went through all connections, removed and repositioned the terminals one by one (some were barely touching). When I came to the contactor, one wire came loose as soon as I poked it with the screwdriver, it's one of the black wires on the lower end of the contactor. Fixed it back in place, turned on the lathe and Hey Ho! the lathe now runs in both directions!
I think I'll rewire the whole thing at some point, nothing wrong with the wires themselves but they could have been longer and routed properly around the case…coming from an aviation background I'm used to much much tidier wiring.
I won't tell Warco yet the problem is solved just yet…I want to see what kind of aftersales they will offer… Ah, btw I have that blown lamp to report!
Thank you all for your help and suggestions, you're a really helpful bunch!
Edited By ChrisB on 07/05/2017 07:44:28