I don't think that whichever label Equation signed up to alienated them from the folk fraternity although their publicity machine at the time might have done so. Their signing to Warner was covered in a lot of the Nationals and their spokesperson went along the lines of "we don't want to be associated with folk; folk is all chunky sweaters and real ale, we are a new fresh face....."and all the usual turgid bollocks. I think folkies were more dismayed than outraged that such a bright young band could sanction such a boring generalisation.
Anyway the one and only time that I saw Equation, a few years later, was at....a Real Ale Festival.