The lambda readings suggest that the engine is running weaker than it should. It's hard to tell if te cat is poorly, just from that. The lambda side of things (as has been said) is completely independent of the cat. If CO and HC readings are within limits, it suggests your cat is probably OK.
You need to find out why it's running weak (or why the gas analyser THINKS it's running weak)! I say that because the MOT gas analyser probe goes into the tailpipe - a long way "downstream of the cat". If there is an air leak anywhere in the exhaust, between the lambda sensor and the back of the exhaust tailpipe (which the garage should have spotted), it will fool the gas analyser into thinking that Lambda is wrong. That's the first, and least expensive thing to check.
Assuming it is gas-tight, it could be the lambda sensor itself, or, as has been suggested, the airflow meter. There could be a variety of other reasons too, I'm afraid. Sometimes, it's cheaper (in the long run) to bite the bullet and go to the "main stealer" with proper diagnostic equipment.