Thought it may be HG, not so sure now.
Seems to be a coolant leak from somewhere around the back of the block. Doesn't appear to be from coolant pipe as far as i can see. Seems to collect on g/b before dripping down sump.
Can't seen to locate it, and now just put my shoulder out 
Anyone know what else is behind there?
If it has a plastic inlet manifold there is a rubber O ring type gasket to seal the manifold onto the block, looks like the Audi logo. They cost about a fiver and can give the same symtoms as a head gasket problem. The K series engine in our 20 years of experience is an absolute disaster, ever wondered why adverts for Rovers sometimes say " Honda Engine ". We have seen them with blown head gaskets at 4 and 5 thousand miles. If you are fixing this as a paid job please tell the customer that you cannot guarantee the work as it will only last about 6 months. If you do change the head gasket have a look at the Land Rover Freelander 1.8 petrol, they have introduced their own modified gasket as the Rover one is not up to the job. Type of antifreeze is also vital, as always. We reckon that the real problem is the design of the engine and in particular the location of the head bolts, too far away from the edge of the block.
This is my car, HG down a year ago, about 12/14k
I'm fairly certain its not HG.
The K series suffers because it was an early all ali engine with a tiny cooling system. The ali block to head with gasket combination is good to about 900C before a reaction takes place. Combustion temps around 1200C. The tiniest glitch on cooling system seems to be what causes the problems, hence why modified HG make only slight differences.
It should have been retired years ago, as as a very early design of this type, there were lessons to be learned.
However, when even now, it embarrases Ford's equivilent Zetec, and Vauxhall's Ecotec, Rover (and Landrover, and Lotus) still think there is life lift in it.