Fantastic story, thanks for sharing.Hello Jesper, the frame you have belonged to me until couple of months back when I sold it as part of a job lot of frames along with the pale blue track frame. After 60 years of accumulating cycling stuff I have decided to actually have an extensive cull!
I purchased your frame from Chalky after Henry's shop closed in '88. He built frames in the workshop behind the shop and they were almost all built to order and mainly for club riders. He only built around 35 in total and the one you have was, as you suspected, probably built as a showpiece, but when the shop closed it became available to buy. As it was my size and I loved the fancy lugwork I had to have it, and built it up to ride. I rode it for about 12 years but then moved on to a Condor 753 and the Henry Lloyd frame has languished in the shed since then.
It had many admirers in its day and if you are able to get it restored that would be great. Unfortunately there are no decals available now but hopefully you can get them copied ? The paintwork was done at Bob Jackson, not sure if they are still going ? 861 does indeed indicate that it was the first one made in 86