Hi , would you say it takes a bit to get started or does the engine fire strait up  
 
Is there many oil leaks - if the compression is low possibly blowing past the rings then engine breather pipe will be really blowing and  would expect plenty oil leaking from ( oil seals ) around breather pipe fittings 
the said compression reading is very close to the 1.9dg petrol engine , the normally aspirated 1.6 diesel had a reading of 34bar when warm ( wear limit 28bar with a max permitted difference of 5bar  ) so I'd think the 1.6td should be just below these figures . compression can also be lost through valves not seating , I've just reset an engine that was very difficult to start ,it needed re-shimming  as only had full compression on one cylinder  
 
I think it might be best to get a second opinion and have another compression check might work out cheaper in the long run  . it might point towards just having the pump timing  adjusted ( make sure its current position is marked .
 
			
			
									
									66 splity deluxe GP mk1,  ,3 type 25s 1 with 1.9dt peugeot engine 100+ 1 with 1.9N/A pug eng ,  there are 7 t25s with pug power in Darlington