Well we solved it. Changed a few things so not quite sure which one was the magic bullet…
1. Bled again. We noticed the way the caliper was mounted, the hose was connected to the bottom end of the caliper so presumably any bubbles in the caliper could not rise out. So we took the caliper off the bike and bled it such that the hose was above it at the time. Tapped it with a screwdriver plenty of times too.
2. made sure to roll the reservoir cap on properly (I had forgotten this last time) also tightened the cap bolts properly (hadn’t done this before as the bolts were worn out – so replaced with new ones).
3. I only saw tracker’s suggestion today but did happen to notice my rear axle was too tight. possibly the opposing locknuts each end weren’t opposed enough so the axle tightened itself as I was rolling(?) So the opposite problem to what tracker describes but if the axle was tightening/loosening itself then something like that might have been going on.
Either way, all fixed thanks for the help guys 🙂