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Rear break shoe/slave cylinder on a Peugeot 206 - reg 2005?

The brakes failed and brake fluid leaked everywhere. When I removed the hub I found the rear shoe had slipped off the slave cylinder piston.
I tried resetting the shoe but it only every just sits on the edge of the piston. I removed the cylinder and shoe and put them back together again but nothing changed.
It looks as if there needs to be a spacer fixed on the rear mounting plate - there is a moulded shoulder but it does look big enough. This looks like it is an older Peugeot 206 issue. U tube appear to show newer vehicles with the slave cylinder held on by 2 bolts instead of just one fixing.

Everything in the rear hub became saturated with brake oil which I have spayed with a muck off cleaner.
Please advise if the cylinder needs replacing because the brake peddle and slave cylinder were depressed with the shoe off the cylinder?
Chris, April 2016
Have had this on a couple of motors and is quite dangerous as it can lead to brake failure,the last one was on a Vauxhall which was caused by a build up of corrosion on the wheel cyl alloy itself,pushing one end away from the back plate with the shoe only resting on the very edge of the piston,the other on a Renault which may be more relevant to your vehicle,it was a couple of years ago and renewed both rear wheel cylinders, if I remember there were issues fitting the new ones, they were sitting with a gap on one side between the backplate resulting in again the piston sitting very close to the edge of the piston,can't remember if they were a two or one bolt fixing but resolved it by clamping a small split pin on one side of the cylinder between it and the backplate which straightened it out and looked much better when sitting on the shoes. I made sure they were the correct cylinders from the supplier and not had any bother with it since then. If your shoes have been saturated the I would definitely renew them along with the cylinders themselves,making sure the are contacting the shoes correctly, don't take chances with brakes, good luck.

cdc, April 2016
link Click here to see other fixes for Peugeot Edge.