I have just checked their website and they are talking cr*p.
"When a song or a piece of music is written, the person who wrote it owns the copyright and therefore has the right to decide how and when it should be played. Music is released, allowing individuals to purchase a song which they can play at home. However, if an individual then wishes to play that song to a wider group of people, for example on their business or organisation�s premises for the benefit of their staff, visitors or customers, it is classed as a public performance meaning they must seek permission from the �copyright owner� of that song before they do so."
You are not providing it for anyone by way of the radio, so it is a non-starter. Write to them asking for refund and tell them that you will take the matter further if they do not comply. They have an inspector for every area so you may be able to deal with a person.