Well, this is a case of logic winning through. Talking to Yoof yesterday we agreed that the timing being out was the only explanation, what couldn't be explained without guessing was why. Timing belt slipping is the obvious guess but there were no obvious telltales, no teeth missing, no bits of rubber etc, in fact everything looked brand new. I said that in theory the only thing that would have caused the gradual failure would be a pulley loose. However as we all know there are keys to prevent this on both of the vital pulleys. However, I never touched the crank pulley when I did the engine for the car so I was curious to see if anything was missing. This is what I found:
So, mystery finally solved.