Im not trying to ruin anyones business, but... 86bhp?!
I had a BMC CDA, Remus cat-back exhaust, no-cat, exhaust pipe diameter increased to 45mm (originally 40mm) from the manifold all the way to the backbox, and dyno tests never showed results above 78bhp.
Even a chip upgrade wont help much IMHO, anyone will be lucky to hit much more than 80bhp.
My choice at the time (not only based on performance, as my engine was literally drinking oil instead of fuel) was in fact to swap the engine with the 1.6 16v, and that REALLY improved the performance. And whats best, mods in this engine really work, my last dyno run showed 118bhp, and that with "only" an induction kit (the same K-tec sells as "KTR ramcharger induction kit) and a Supersprint exhaust line. To get 8bhp in the 1.2 16v youll have to do a lot more than that!