I've tested with Sumatra PDF, evince viewer and an up to date Adobe Reader. I get the same problem either way.
I tried changing my default printer to a colour one. This did not make a difference either.
I finally discovered that the problem was arising only when I had "ISO 19005-1 compliant (PDF/A)" selected under the PDF Options. Deselecting that option causes the image to be displayed correctly. Further investigation
shows that transparency in objects is forbidden in "ISO 19005-1 compliant (PDF/A)" formatted documents.
Given that I had selected the PDF/A option and my document contained images with transparency, it would have been nice if Word could have warned me that the images might not render correctly rather than just generating a poorly rendered document.
Thanks for your help. It's very much appreciated.