… pursues note concluding Mikado (G & S) (4)

I believe the answer is:
dogs
'pursues' is the definition.
(dogging is a kind of pursuing)
'note concluding mikado g s' is the wordplay.
'DOGS' is hidden in amongst the letters.
However, I'm unsure how the hidden word is indicated.
Can you help me to learn more?
(Other definitions for dogs that I've seen before include "Persistently follows" , "Canines" , "Shadows" , "Hounds" , "Setters, for example" .)