Have a look at the valves - it may have simply been a bit of carbon under a valve or even an incorrectly adjusted tappet, but more likely a valve needs reseating or possibly is sticking (or both). It is unlikely that lack of compression results from anything except the piston/cylinder seal or the valve/valve seat seal. Loss of compression through leaking headgasket or cracked head or block is possible, but it would be very unusual for this not to be immediately obvious when the head is removed.
It could have been useful to test before taking the head off - turning the engine by hand and listening to the manifolds and crankcase breather in turn will usually give a noticeable hissing to show whether the leak is piston rings, intake or exhaust.
Hope this helps, 
John
				
			 
			
		 
			
				
			
			
				John
JDNSW
1986 110 County 3.9 diesel
1970 2a 109 2.25 petrol
			
			
		 
	
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