After an exhaustive search spanning a couple of weeks I have finally found one (no thanks to you guys)
Its really odd to me that Apple did not provide a native Notes app or a watch equivalent of OSX Notes for the watch. I don't know about everybody else but I use Notes on the MBP for lots of things. Having access to it on the iPhone is really handy so I cant understand why it doesn't have a watch extension.
I wasn't looking for an "all bells and whistles" app. Many popular note taking apps duplicate the functions of Reminders/Notifications and Calendars so that's just overkill. What I wanted was a note taking app for the iPhone which could be reflected on the Watch, sync between devices and allow creation of new notes on the watch as well as annotation of existing notes via dictation (something the watch does surprisingly well).
So I found two. SnipNotes and Notes Watch. Both work well although Notes Watch sometimes fails to sync. But SnipNotes also provides a very functional widget allowing a whole range of actions and easy sharing, filtering, formatting options plus iCloud syncing, thumbprint locking and a macOS version. The iOS version gives you a free 7 day trial period with no ads and on day 2 I'm pretty much sold.