No compression in cylinder two

Hi there,

Would really appreciate help on this. My car refused to start one morning and it was towed to the dealership. Dealership sighted no compression on cylinder 2 and recommended removing cylinder head to check issue. Report I received back:

CYLINDER 1. 72, 22 - 72, 22
2. 72, 23 - 72, 22
3. 72, 23 - 72, 22
honing pattern still visible
bottom end measure only 0, 01mm ovality and should be
okay. Recommend to remove pistons for inspection due to
valves hitting pistons. No guarantee can be given to bottom end if only cylinder head refresh is done.1 550.00 550.00 t engineering to cylinder head (strip, check and report,
pressure test, vacume test, reface cylinder head 0, 10mm, reface 12 x seats, replace 6 x intake valves, replace 6 x exhaust valves, check valve spring pressures and lap and assemble. Shimming chemical cleaning to components consumables/sundries.


They are recommending a new engine, is that really necessary?

Mind you this car had just come back from its major service and had the cam belt changed and 4 days after it refuses to start.

Please help.

Thank you.