has this bike ever been up the road? could there be some damage to the loom, maybe a rub, shorting to the frame, that is robbing the sparking circuit when the starter is pressed but not on a bump? It's as if using the starter button and circuits is bypassing (shorting out) the coil packs that generate the sparks! I think its important now to get a spark plug out and see if it is actually sparking when being cranked.....it has to be electrical, because if it was a fuelling issue, it would not bump, or it would cut out after being bumped...
edit, went back and read the whole thread, so answered my question, This bike HAS been dropped, the week Paddy bought it, how much damage was there and in what area? this fault could now be anywhere on the bike!