Suggestions for a friend's geared commuting bike

Ok - UTFSed, of course; not really turned anything up.

My friend is just starting to get into cycling to work but doesn't own his own bike yet. Here's the brief:

• OTP and available on the cycle to work scheme
  
• £500 max
  
• Some gears required but not necessarily a full complement; e.g. hub geared, or something like the Tokyo Bike Shimano setups that have a rear derailleur but a single chainring
  
• Not a road bike
  
• Preferably not a hybrid
  
• Not too heavy
  
• Will take (or come with) mudguards
  
  

Closest I've come is the Charge Tap (it has mudguard eyelets, right?), but it's over budget. The Tokyo Bike Classic/Promenade would do the job but you can't get them on the scheme.

Any suggestions?

(NB: "friend" is not a euphemism for "me".)