Personally, I wouldn't want an AV receiver. I'd only go for one of those if I had the intention to add various other devices or upgrade to 5.1 at some point. For stereo and connecting one device, I'd prefer to stick with something smaller.
I'd probably go for Monitor Audio A100 or Marantz MCR510. Denon DM39 is a decent option if you want to spend less, but the wi-fi capability of both A100 and MCR510 adds more connectivity for maybe a phone or tablet via network. DM39 only has optical, as well as analogue which they all have.
Cambridge Audio One, is another option. On it's own for £350, it's too expensive for what it is really, but Richer Sounds have it in a deal with Cambridge Audio speakers included for no extra cost. That's a pretty good deal, but the included speakers have no real reviews, so no idea how they compare to others.
For smaller speakers I'd probably go for Q Acoustics 3010. Larger, possibly Monitor Audio BX2. Best to have a listen to some in Richer Sounds though, as the speakers have the largest impact on the sound, and preferences vary from person to person.