Hi,
Looking up the engine number prefix in John Sneddon book it does list a 12H702 but not a 12H706.
the 702 part refers to a Mechanical Fuel Pump, Lucas 16AC Alternator, Std ratio rod change box and is ADR27 compliant
The AA is Carburettor Crankcase ventilation with air temperature control. The atc could be either the flapper on the air cleaner or the waxstat jet tube. The Z denotes a block modification of deletion of the separate distributor clamp, external oil pipe and alternator bracket but I suspect the bad grammar in description doesn't mean the deleted the oil pipe and alternator bracket, merely changed it.
The rest is just a serial number, but what you read as a 2 is probably the Z from above.
On the engine I mentioned in my earlier post the number was on a Brass plaque riveted to the engine block with nothing stamped into the block. The brass bit is long gone but I still have the receipt from when I bought it somewhere to check I not remembering things wrong, it was a long time ago.
Terry