I'd suggest Hi-Fi kit. Second hand is best to get the most for your money, but it could even be done new. Either way will beat an all-in-one dock or mini-Hi-Fi.
For new simply a Denon PMA255 amplifier and Eltax monitor 3 speakers would be good. These can be bought from Richer sounds along with connecting cables (3.5mm - 2xphono and speaker wire).
Looking second hand on a famous auction site with the search term "integrated amp" should bring up some suitable models. Makes such as Denon and Cambridge Audio are likely to fall into your price range. I'd look to spend around £60-70 on the amp. Leaving a good amount for speakers is wise as these generally retain thier value more second hand (good amps are often quickly available cheap second hand). Mission speakers (700 series) are often very cheap and are respectable, or you might be able to find older Monitor audio models
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