+1 on Geoff's diagnosis...starter will work as usual BUT just spin or grind if there's a problem with the flywheel ring gear.
I'm betting it's a pretty simple electrical problem. How familiar are you with a multi-meter? They can save you a lot of time & expensive parts swapping, the little devils. I use mine so often I bought a cheap $5 one & left it in the trunk tool kit.
I'm not terrifically familiar with the M40, but I'll take a couple of guesses. I don't think rotating the motor made a difference, I'm figuring it was coincidental unless you twisted the motor enough to connect a damaged ground strap. If you're sure the motor is in adequate shape (no coolant leaks, oil in the sump, etc) I'd start testing the electrical system.
I'd be inclined to check the key switch, the inhibitor relays and the under-voltage relay. I'd also be sure the ground straps off the motor are in good shape. I'm not sure where they are on an RHD M40, but look for a beefy brown wire off the motor mounts/block/cylinder head connected to the chassis frame rails. Cracked insulation is OK, but a corroded cable must be replaced.
Did you hear any buzzing from the dash when trying to start the car? If so, your under-voltage relay is inhibiting the start circuit. Charge/test/repair the battery, find the short, etc... This system is designed to protect the electrical systems from less than 9VDC or so. Low voltage can damage electrical components in the car.
There are also a
pair of relays (K5 & K7) that disconnect the car's electrical system when the starter motor is cranking, BMW calls them the unloader relays. Test them to be sure they're working.