I think you may have it there guys! The points rotate intermittently so it is the armature. Is this a common thing? Also, as I'm fairly new to Brit bikes, could you take me through the repair. Presumably it'll need to be retimed - can I do this without specialist tools? I have an engineer pal who restores bikes so he may well be able to give some pointers (there I go again) or help out with tools.
Start by taking the timing cover off. That’ll show whether the ATD pinion just came loose or (worse) the teeth have stripped.
For timing you won’t need any special tools apart from a timing disc. It can be done with the pencil down the plug hole trick, but a timing disc is more precise.
If the ATD came loose then you’d have to determine top dead centre on the right hand cylinder’s compression stroke. You’re on compression stroke when both valves are closed.
On the magneto side, you’re on the right hand cylinder spark when the brass part of the slipring is visible through the upper pick up brush hole.
Once determined those, find the exact top dead centre, fix the timing disc and create a pointer to the 0 degree on the disc.
Jam the ATD on full advance with a small wedge.
Then turn the cranck backwards by 32 degrees, put a fag paper between the magneto points and rotate the shaft (should only be a little bit) until the fag paper pulls out.
Thighten the ATD ( only slightly because you may need to loosen it again when the first attempt wasn’t entirely correct).
Once happy with the adjustment, tighten it up firmly, and you should have a working bike again