Wp List Categories Issue

Evening All

I have been modding a template and changing afew things now something I havent been able to change is the below

http://www.allthingstools.co.uk

the 2nd nav bar which says home & No Categgores, I want this to just show categoires and no home page link now when I remove all the code and just insert the WP List Categories code it doest get rid of the No Categories text and then it breaks my actually blog page

Any ideas?