Ok. So here's the latest update.
First up, I disconnected the handbrake cables from the rear brake levers (note, pins were already a loose fit as per YT's response above)
Then I re-checked rear brake shoe/drum tension as per Terry's method. Drum was locked if I rotated adjuster one 'click', then free if I back it off one click.
Next, I clamped both front brake hoses to isolate the front discs.
Result: rock hard pedal!
Conclusion: rear brakes are good; front callipers or master cylinder at fault.
I then removed one clamp from a front disc hose, and re-checked pedal.
Pedal now travels half way to floor.
Next I removed the other clamp (i.e., both clamps removed) and re-checked pedal.
Result: pedal is nearly at floor when applied.
I had SWMBO apply the brakes whilst I observed the disc/pad interaction. I could see a fraction of movement of the pads, which seems right.
Conclusion: front callipers are good; master cylinder at fault?
The master cylinder is brand new (as is nearly everything else!), which is a new type tandem variety; see following photo. The top line goes to the front brakes via a T-Union mounted on the firewall. The bottom line goes to the rear drums via a brake compensator mounted on the rear chassis rail.
Note: I still can't work out why the handbrake won't work either
Cheers, Greg