As our main stereo seems to be on its dying legs, I think it is time to replace it.

I am pretty overwhelmed by the variety of what's available and I'm hoping for some guidance as to what is a good option.

Within a budget of approx. £400 I am looking for a compact hifi with speakers that has:
Wifi/Ethernet for streaming and internet radio
CD player
Optical audio in (so I can connect to my TV)

I have seen a fair few devices that have what I am after, but I'd appreciate some input from more knowledgeable folk

Something like this perhaps

Denon mini system
http://www.richersounds.com/product/...9/deno-ceol-n9

Q-Acoustics speakers.
http://www.richersounds.com/product/...ac-q3010-graph

Denon do some very fine kit. Have used several of their products over the years and found them to sound good and be very reliable.

I've got the predecessors for the Q-Acoustics speakers on my surround sound system. They sound very nice indeed and despite their compact size can produce a decent amount of bass and volume if needed.

If you have a Richer Sounds store nearby, pop in. They have good deals on hifi gear at up to that price level-
If you do go for an all in one, with a pair of speakers ( not necessarily the ones it comes with- of you can afford £50 extra, you could for example, buy a pair of Wharfdale Diamonds or Missions, etc, that you might think improves the sound) , consider

Bluetooth facility- could be very handy

Dab+ facility- this is the new dab type.

An " Aux" input- this might be handy for you in the future

Usb socket - again; might come in handy.

These will futureproof the stereo for a good while and its facilities you might end up using quite a lot

Philips; Sony; Pioneer ;Onkyo are a few makes to look over.

If you buy seperates; look for similar inputs. Consider 'Cambridge audio' seperates if you can get them at your budget..

Enjoy your new hifi!

chrisjr's recommendation is decent gear.

If it was me then I'd push the boat out a little and go for the Marantz MCR 611 Melody Media and a pair of Wharfedale Diamond 220 speakers.

Marantz and Denon are part of the same company, and traditionally it has been Marantz that is tuned for Hi-Fi performance whereas Denon has been about power. IMO the Marantz will sound sweeter with a broader range of music.

On the speakers the Wharfedales are a touch larger and I think they hang on to the bass bass output better at lower listening volumes. It helps too that the bass port on the Wharfedales is a slot running around the bottom of the speaker rather than a traditional rear-facing hole. The benefit comes if the speakers need to be placed near to the rear wall or on a bookshelf. The bass will stay more even and progressive rather than getting a bit lumpy which happens when a rear-ported speaker sits a bit too close to a back wall.

Individually the Marantz and Wharfedales are a bit more expensive than the Denon/Q Acoustics combo. There is a bundle deal though that makes them the same price as the bundled Denon + QA's: £429

In the end either combo is light years ahead of the performance of a typical Sony/Panasonic/N.E.Other shelf system sold by large electrical retailers and online.

If you have a Richersounds nearby then give them a call and ask if they can demo a couple of systems with alternative speakers for you. Things like the sound of speakers can be pretty subjective. What I or anyone else on DS reckons is a good sounding speaker you may think is a steaming pile of doggy do-do and vice versa.

So always best if you can to listen to a few different speakers to make sure your ears find them acceptable. After all better to find out you hate the noise they make before parting with your hard earned than after you've unpacked all the boxes and set it up in your living room.

Thanks for the suggestions. I live in Spain and I have found this http://www.madridhifi.com/p/denon-rc...FVS4GwodSmAD8g

The page is in Spanish, but I wanted to check if this was the same model as you mentioned - it seems a very good price!

Not only is it the same model but both websites have nicked the same product picture from Denon