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My general advice (as a broadcast engineer) is mainly budget for decent speakers as they make such a massive difference. Any decent brand of mini system amp/CD/radio combo you buy will likely have much lower distortion figures than that if the speakers you end up buying. Sometimes you can get bargains on speakers on eBay, but I've not been looking recently.
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get Focal active (powered) monitors, they'll make a huge difference. @Chalfie mentioned a model up thread that are good - from ebay, obvs
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Active speakers is a good suggestion. These might be worth considering:
Am looking at upgrading my system, as currently all I have is a laptop and a couple of budget/ reasonably OK sounding speakers. Looking at mini systems in the Denon range (and others). Budget up to around £500. Ideally would like CD and wireless and possibly DAB. I have no knowledge of what speakers would work with a mini system. Any recommendations on what gives best value (would consider 2nd hand)?