Yep you need a new up stream lambda Lyndon.. Don't buy a Pug one.. Go to Eurocarparts and get a Universal one, preferably a BOSCH item.. for £35.00.. takes about 15 mins to fit..
I also used to get random misfires appearing on my CC, Changed the Down stream Lambda and the false readings dissapeared.. Again get a Universal one (Bosch)..
Now this is where I would recommend that Lamdba/O2 sensors are changed every 40k miles or so as they do degrade over time causing erratic readings/DTC codes and increased fuel consumption..
And yes misfiring engines will very very quickly destroy the CAT as you will be dumping unburnt fuel into it.. However it is pretty common for the non multiplexed 2.0 EW engined CC to suffer from "false" misfire detection..
Note: Just changed the Upstream sensor on my 172 and the fuel consumption and throttle response has noticably improved..
Now here is a bit of money saving info.. Buy an OBD cable from these guys
HERE for £65.00 and you will be able to view the DTC's and clear the "K" light for free.. You will need to download the "Scantool" freeware from
HERE
So why pay Peugeot to plug their diag tool in and charge a small fortune. When you can do it yourself..