PulseAudio does not recognise Bluetooth after discovery

I'm trying to use a Bluetooth speaker with my Lubuntu (Ubuntu 14.04.1 LTS).

The bluetooth device itself is connected and I get the following lines from pulseaudio in vvvv mode:

D: [pulseaudio] bluetooth-util.c: dbus: interface=org.bluez.AudioSink, path=/org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5, member=PropertyChanged
D: [pulseaudio] bluetooth-util.c: Device /org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5 interface org.bluez.AudioSink property 'State' changed to value 'connecting'
D: [pulseaudio] bluetooth-util.c: dbus: interface=org.bluez.Audio, path=/org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5, member=PropertyChanged
D: [pulseaudio] bluetooth-util.c: Device /org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5 interface org.bluez.Audio property 'State' changed to value 'connecting'
D: [pulseaudio] bluetooth-util.c: dbus: interface=org.bluez.Device, path=/org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5, member=PropertyChanged
D: [pulseaudio] bluetooth-util.c: dbus: interface=org.bluez.AudioSink, path=/org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5, member=PropertyChanged
D: [pulseaudio] bluetooth-util.c: dbus: interface=org.bluez.AudioSink, path=/org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5, member=PropertyChanged
D: [pulseaudio] bluetooth-util.c: Device /org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5 interface org.bluez.AudioSink property 'State' changed to value 'connected'
D: [pulseaudio] bluetooth-util.c: dbus: interface=org.bluez.Audio, path=/org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5, member=PropertyChanged
D: [pulseaudio] bluetooth-util.c: Device /org/bluez/843/hci0/dev_0C_A6_94_B1_C1_C5 interface org.bluez.Audio property 'State' changed to value 'connected'

But nothing beyond this point happens. No output device appears in pavucontrol, system continues to use internal speaker as output and when I disconnect the bluetooth device I can see "Connected" status in the above log changes to "Disconnected".

pactl confirms that module-bluetooth-discover and module-bluetooth-policy (and for good measures module-switch-on-connect) are running and apt-get confirms that all of them are latest version.

Any help or clue would be appreciated.